GDP up 13.3% in third quarter

The National Statistics Office on Tuesday said that the gross domestic amounted to €5.2 billion in the third quarter of 2023, an increase of €610.2 million, (13.3%), when compared to the same quarter of 2022.

In volume terms, GDP rose by 7.1%. The production approach, also called the output approach, measures GDP as the sum of the gross value added (GVA), which is the difference between value of output and the value of intermediate consumption, and taxes less subsidies on products.

GVA rose by 4.7 % in volume terms, when compared to the corresponding quarter of 2022.

The expenditure approach is another method used to calculate GDP and is derived by adding final consumption expenditure, gross capital formation and net exports.

Domestic demand had a negative contribution of 3.4 percentage points to the year-on-year GDP growth rate in volume terms.

Conversely, the external demand registered a positive contribution of 10.5 percentage points.Final consumption expenditure increased by 5.6% in volume terms.

This was the result of increases in private final consumption and general government final consumption of 7.5% and 0.7%, respectively.

Gross fixed capital formation declined by 26.8% in volume terms. This decrease was mainly attributable to lower investment in transport equipment.

Exports of goods and services in volume terms increased by 5.6% and Imports of goods and services declined by 0.7%.

The third approach to measure economic activity is the income approach, which shows how GDP is distributed among compensation of employees, operating surplus of enterprises and taxes

on production and imports net of subsidies.

Compared to the third quarter of 2022, the €610.2 million increase in nominal GDP was the result of a €184 million increase in compensation of employees, a €260.6 million rise in gross operating surplus and mixed income, and an increase of €165.6 million in net taxation on production and imports.

GNI differs from the GDP measure in terms of net compensation receipts, net property income receivable and net taxes receivable on production and imports from abroad.

Considering the effects of income and taxation paid and received by residents to and from the rest of the world, GNI at market prices for the third quarter of 2023 was estimated at €4,758.6 million, the NSO said.