2022 GDP up 6.9%, or €1.9 billion, over previous year

During 2022, Gross Value Added (GVA) rose by 13.7% in nominal terms and 8.1% in volume terms, when compared to 2021.

The production approach

The drivers behind this 8.1% growth were Service activities (NACE Sections G to U), Industry (NACE Sections B to E) and Agriculture and fishing (NACE Section A), with a contribution of 7.7 percentage points, 0.7 percentage points and 0.1 percentage points, respectively. Conversely, Construction (NACE Section F) had a negative contribution of 0.3 percentage points. Compared to last year, Service activities increased by 9.0%, Industry by 7.6% and Agriculture and fishing by 8.5% in volume terms, whereas Construction dropped by 7.0%.

The increase in Service activities was mainly driven by the following sectors: Accommodation and food service activities (81.4%), Transportation and storage (23.3%), Administrative and support services activities (15.8%), Information and communication (7.9%), and Wholesale and retail trade; repair of motor vehicles and motorcycles (7.7%).

Net taxes on products contributed negatively towards GDP growth, with a decrease of 5.9 % in volume terms.

The expenditure approach

The expenditure approach is another method used to calculate GDP and is derived by adding Final consumption expenditure of Households, General government, and Non-Profit Institutions Serving Households (NPISHs), Gross capital formation and Net exports.

The contribution of domestic demand to the year-on-year GDP growth rate in volume terms was of 10.9 percentage points, of which 4.7 were due to Final consumption expenditure and 6.1 to Gross capital formation. External demand registered a negative contribution of 4.0 percentage points, with 10.8 percentage points attributable to exports and 14.8 percentage points explained by imports.

In 2022, Final consumption expenditure witnessed an increase of 7.6% in volume terms. This was the result of increases in Household expenditure, Government expenditure and NPISHs expenditure by 10.3%, 2.4% and 3.7%, respectively.

Gross fixed capital formation rose by 30.4% in volume terms. This increase was mainly attributable to investment in Transport equipment.

Exports and imports of goods and services in volume terms rose by 6.4% and 9.7%, respectively.

The income approach

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 2021, the €1,868.4 million increase in nominal GDP was the result of a €643.9 million increase in Compensation of employees, a €1,172.2 million rise in Gross operating surplus and mixed income, and an increase of €52.2 million in Net taxation on production and imports.

Gross National Income (GNI)

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 2022 was estimated at €15,561.5 million.