Denmark: Economy slows in Q2
September 30, 2016
In the second quarter, GDP expanded a revised seasonally-adjusted 0.4% over the previous quarter (previously reported: +0.5% quarter-on-quarter), according to data released by Statistics Denmark (DST) on 30 September. The reading marked a slowdown compared to Q1’s 0.7% expansion. The deceleration was driven by a contraction in fixed investment and weaker private consumption. In annual terms, GDP grew 0.8% in Q2, rebounding from Q1’s 0.3% drop.
Concerning the domestic economy, private consumption growth slowed from 0.6% in Q1 to 0.4% in Q2. By contrast, public spending strengthened from Q1’s 0.8% rise to a remarkable 1.3% expansion in Q2, which marked the fastest pace of growth since Q4 2007. Fixed investment deteriorated from Q1’s 0.4% rise to a 1.2% contraction in Q2.
On the external side of the economy, exports of goods and services grew 1.2% over the previous quarter, improving from the 0.7% increase seen in the previous quarter. Imports growth also picked up, albeit to a lesser extent, accelerating from 0.2% in Q1 to 0.3%. As a result, the external sector’s net contribution to overall economic growth increased from 0.2 percentage points in Q1 to 0.4 percentage points in Q2, which represented the largest contribution since Q1 2015.