Denmark Economic Outlook
June 2, 2020The economy contracted sharply in the first quarter due to lower consumption, investment and exports, although Denmark still performed notably better than the EU average. The country is in the midst of a much steeper downturn in Q2 as the full effect of containment measures adopted in mid-March is felt. In April, retail sales fell sharply and the manufacturing PMI moved deeper into contractionary territory, while business and consumer sentiment were deeply pessimistic through May. More positively, the government has had success at containing new Covid-19 cases and has significantly lifted lockdown restrictions in recent weeks, with schools, shops and restaurants now open again. Coupled with generous fiscal support, this should be supporting activity somewhat.
Denmark Economic GrowthThe economy is seen contracting at the sharpest pace since 2009 this year. Even though many domestic restrictions are being lifted, some remain, which will hamper private consumption. Moreover, weak activity abroad will hurt exports. Nevertheless, strong fiscal stimulus will limit the contraction. A possible second wave of infections poses a downside risk. FocusEconomics analysts see a contraction of 5.0% in 2020, which is down 0.9 percentage points from last month’s forecast, before growth of 4.3% in 2021.
Denmark Economy Data
5 years of Denmark economic forecasts for more than 30 economic indicators.
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|Bond Yield||-0.15||-1.54 %||Jan 01|
|Exchange Rate||6.66||-0.57 %||Jan 01|
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Denmark Economic News
June 29, 2020
Business confidence among firms in the manufacturing sector rose to minus 16 in June from May's minus 26 on the back of improved sentiment regarding production.
June 22, 2020
Consumer confidence came in at minus 3.1 in June, up from May's minus 8.8.
June 10, 2020
Consumer prices fell a seasonally-adjusted 0.10% over the prior month in May, in line with the 0.10% drop seen in April.
May 29, 2020
The economy shrank 2.1% in the first quarter in seasonally-adjusted quarter-on-quarter terms (Q4: +0.4% qoq, previously reported: +0.6% qoq) as Covid-19 hit activity.
Denmark: Business confidence in the industrial sector retreats further in May, hints at weak fixed investment
May 28, 2020
Business confidence among firms in the industrial sector fell from minus 22 points in April to minus 26 points in May, marking the lowest reading since April 2009.