GDP amounted to €6.1 billion in Q2 2025

Provisional estimates indicate that the Gross Domestic Product (GDP) for the second quarter of 2025 amounted to €6.1 billion, registering an increase of €295.8 million, or 5.1 per cent, when compared to the same quarter of 2024. In volume terms, GDP rose by 2.7 per cent.

The GDP deflator went up by 2.4 per cent compared to the same quarter last year. This represents no change in comparison to the year-on-year rate recorded in the first quarter of 2025.

The production approach

The production approach, also called the output approach, measures GDP as the sum of the Gross Value Added (GVA), which is the difference between the value of Output and the value of Intermediate consumption, and Taxes less subsidies on products.

During the second quarter of 2025, GVA rose by 3.8 per cent in volume terms, when compared to the corresponding quarter of 2024.

The contribution to the GVA growth rate in volume terms of Industry (NACE Sections B to F) and Service activities (NACE Sections G to U) was positive at 0.4 and 3.5 percentage points, respectively. Agriculture and fishing (NACE Section A) contributed negatively by 0.1 percentage points.

The increase in Service activities was mainly driven by the growth rates recorded in the following sectors: Information and communication (8.1 per cent), Accommodation and food services (11.5 per cent) and Financial and insurance activities (5.4 per cent).

The expenditure approach

The expenditure approach is another method used to calculate GDP and is derived by adding Final consumption expenditure, Gross capital formation and Exports less Imports.

Domestic demand had a positive contribution of 2.0 percentage points to the year-on-year GDP growth rate in volume terms. External demand also registered a positive contribution of 0.7 percentage points.

In the second quarter of 2025, Final consumption expenditure witnessed an increase of 2.2 per cent in volume terms. This was the result of an increase in Households and General government final consumption expenditure of 2.2 per cent each. NPISHs increased by 1.3 per cent.

Gross fixed capital formation increased by 1.9 per cent in volume terms.

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 the second quarter of 2024, the €295.8 million increase in nominal GDP was the result of a €222.3 million increase in Compensation of employees, a €94.1 million rise in Gross operating surplus and mixed income, and a decrease of €20.6 million in Taxes on production and imports less subsidies.

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 the second quarter of 2025 was estimated at €5.5 billion.