Maltese Economy Returns To Growth

by Robert Lee, Tax-News.com, London

26 June 2002

The Maltese National Statistics Office announced on Monday that the jurisdiction's economy has returned to growth following two consecutive quarters of decline.

According to NSO figures, GDP increased in real terms by 1.4% (Lm 4.8 million) during the first three months of this year, following a 2.9% decrease in the preceding quarter as a result of the September 11 terrorist attacks and ensuing economic downturn.

Analysing the figures earlier this week, the Malta Independent reported that it was the electronics and tourist sectors which were most damaged by the events of last year, and which therefore contributed most significantly to the economic decline.

However, according to the NSO figures, the rise in the Maltese economy has not come as the result of a significant improvement in the aforementioned sectors, but is due to growth in the insurance, banking, and real estate industries.

The Malta Independent reports that the contribution made by these three sectors to the economy in the first quarter of 2002 increased 18.3% to Lm31.9 million compared to the same quarter last year.

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