Denmark Economic Outlook
February 27, 2018The economy recovered in the last quarter of 2017, after contracting in Q3 over the previous quarter. Although industrial production contracted year-on-year in Q4, it increased on a seasonally-adjusted quarter-on-quarter basis, while the external sector posted a solid performance, with robust exports of maritime transport services. Nevertheless, retail sales growth was relatively muted, pointing to some weakness in domestic demand at the end of the year. Leading indicators signaled that the economy likely improved in the first months of 2018, with consumer confidence at a seven-month high in February, and the manufacturing PMI sharply up in January as output increased markedly. On 6 February, the ruling government coalition agreed to a EUR 670 million tax cut, mainly aimed at lowering income taxes. The agreement came far short of the EUR 3.1 billion the prime minister’s Liberal Party had hoped to achieve, as talks with its far-right coalition partner collapsed due to disagreements over immigration policy.
Denmark Economic GrowthLower export growth due to a stronger euro-pegged currency should lead the economy to slow slightly this year. Accommodative monetary policy, low inflation and a tight labor market are, however, poised to boost consumers’ purchasing power, buttressing domestic demand. A boom in the housing market and high levels of household debt are among the country’s main downside risks, but they are unlikely to significantly weigh on the outlook as long as low interest rates prevail. FocusEconomics panelists expect GDP to expand 1.9% in 2018, unchanged from last month’s estimate. For 2019, the panel projects growth of 1.8%.
Denmark Economy Data
5 years of Denmark economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.62||-1.54 %||Mar 15|
|Exchange Rate||6.05||-0.57 %||Mar 15|
|Stock Market||994||-0.39 %||Mar 15|
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Denmark Economic News
March 12, 2018
Consumer prices rose 0.7% compared to the previous month in February, contrasting January’s 0.3% decline.
February 27, 2018
According to the business survey conducted by Statistics Denmark, business confidence among manufacturing firms improved in February, after briefly dropping into negative territory in January.
February 20, 2018
The consumer confidence index released by Statistics Denmark inched up to 8.5 points in February from 8.2 points in January, reaching a seven-month high.
February 14, 2018
Preliminary data released by Statistics Denmark indicates that the economy bounced back in the fourth quarter from the contraction observed in Q3.
February 12, 2018
Consumer prices fell 0.3% compared to the previous month in January, matching December’s result.