The 6.4 per cent Malta's economic growth reported by the NSO for the second quarter of 2017 means that the country has once again recorded the highest economic growth rate in the EU with a growth rate which is nearly thrice the average growth recorded in the EU28 (2.2 per cent) and the Euro Area (2.1 per cent).
Taking the first two quarters of this year, the economy's income from wages and salaries of employees increased by €123 million, while profits generated by businesses increased by €234 million. During the same period, income from exports grew by €154 million.
Minister for Finance Edward Scicluna said: 'This remarkable growth shows that our economy is continuing to steam steadily ahead setting consistently higher incomes for businesses and employees alike.'
During the first half of this year, economic growth remained broad-based as growth in the gross value added of all sectors reached €353 million. Double digit growth rates were recorded by the professional, scientific and technical activities, by administrative and support services and arts, as well as entertainment and recreation, repair of household goods, and other services sectors. Other notable private sector increases were also registered in wholesale and retail trade, repair of motor vehicles and motorcycles, transportation and storage, accommodation and food services, and the financial and insurance sectors. Growth in gross value added was also recorded in the manufacturing and construction sectors.
The robust growth in the first half of this year was reflected in a €95 million increase in private consumption of households, and a significant drop of €56 million or 6.9 per cent in government final consumption expenditure. The significant increase in consumption reflects the dynamic performance in the labour market boosting a record low unemployment rate of 4.2 per cent and a remarkable increase of 8,576 in additional jobs created in the private sector, by March of 2017.
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