Provisional estimates published by the National Statistics Office indicate that the Gross Domestic Product amounted to €2,825.2 million in the second quarter of this year, a decrease of €494.3 million when compared to the corresponding period in 2019.
The Gross Value Added fell by 13.8 per cent, with widespread contractions across all main sectors of the economy.
The drop in services was mainly driven by declines in the accommodation and food service activities, transportation and storage, wholesale and retail trade, repair of motor vehicles and motorcycles and professional, scientific and technical activities.
Services activities that contributed positively to GVA included information and communication, financial and insurance activities and arts, entertainment and recreation activities.
The decline in industry was mainly driven by manufacturing.
A drop in total final consumption expenditure was the result of a decrease in household expenditure, which was partly offset by an increase in the expenditure of non-profit institutions serving households and a rise in Government expenditure.
The NSO also reported that the Consolidated Fund had a deficit of €1,051.8 million at the end of July, when Government revenue dropped by over 20 per cent and the increase in expenditure exceeded 14 per cent compared to the same period in 2019.
Recurrent revenue by the end of July totalled €2,106.1 million, down 20.2 per cent from the €2,638.6 million reported between January and July 2019.
Recurrent expenditure amounted to €2,573.2 million, an increase of €200.1 million from the €2,373.1 million reported a year earlier.
The Government’s capital spending totalled €478.2 million, a rise of €195.8 million, largely due to additional spending on investment incentives (€193.1 million), which amounted to €217 million, including €209 million in relation to the COVID-19 wage supplement.
Government debt stood at €6,624.2 million by the end of July, up €1,173 million over the previous year.