The production approach

During the first quarter of 2018, Gross Value Added (GVA) increased by €155.4 million when compared to the same quarter last year. GVA is the net result of output valued at basic prices less intermediate consumption valued at purchasers’ prices.

This increase was mainly generated by public administration and defence; compulsory social security; education; human health and social work activities which increased by €40.2 million or 9.8 per cent, arts, entertainment and recreation, repair of household goods and other services which increased by €30.2 million or 9.4 per cent, wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities which increased by €28.2 million or 6.2 per cent and professional, scientific and technical activities; administrative and support service activities which increased by €21.1 million or 6.1 per cent. terms and decreased by 0.7 per cent in real terms. Imports of goods and services decreased by 1.2 per cent in nominal terms and by 4.5 per cent in real terms. Domestic demand was low in the first quarter of 2018, mainly due to a drop in gross fixed capital formation which decreased by 12.1 per cent in nominal terms and 15.2 per cent in real terms. On the other hand, total final consumption expenditure increased by 6.3 per cent in nominal terms and 4.8 per cent in real terms. imports net of subsidies.

Compared to the first quarter of 2017, GDP at current prices went up by €171.0 million, and is estimated to have been distributed into a €78.3 million increase in compensation of employees, a €69.9 million increase in gross operating surplus of enterprises and a €22.8 million increase in net taxation on production and imports.