Malta: Strong rebound in the services sector drives strong 9% growth in GDP

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Provisional estimates published by the NSO indicate that the Gross Domestic Product (GDP) for 2021 amounted to €14,533.8 million, registering an increase of €1,473.9 million, or 11.3%, when compared to 2020. In volume terms, GDP rose by 9% following the drop of 8.3% registered a year earlier as a result of the pandemic.

The main driver behind this 9.0 per cent growth was the services industry, with the largest contribution (8.1%), followed by much smaller contributions by industry (0.6%) and construction (0.3%). Compared to the year before, service activities increased by 9.6%, industry by 5.6% and construction by 5.8% in volume terms.

The strong increase in the services sector was fuelled by transportation and storage (37.9%), Information and communication (12.5%), wholesale and retail trade, (11.8%), and Accommodation and food service activities (55.0%)

Net taxes on products contributed positively towards GDP growth, with an increase of 13.8 per cent in volume terms.

External demand registered a positive contribution of 1.8%, with 12.2% attributable to exports, and 10.4% explained by imports.

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