Denmark Economic Outlook
September 1, 2020The economy dived at a record pace in the second quarter according to the flash estimate, resulting from strict lockdown measures imposed to contain the pandemic. A deteriorated labor market weighed on activity in Q2, although the unemployment rate marginally improved in June. On a brighter note, exports fell at a much slower pace and retail sales increased strongly in June, likely pointing to a recovery in domestic and foreign consumer demand at the end of Q2 after most restrictions were eased. Looking ahead, a rebound is expected in Q3. The manufacturing PMI climbed in July, suggesting that a recovery in the manufacturing sector is underway. Moreover, the re-opening of borders should bode well for the tourism sector, although a surge of Covid-19 cases in early August risks tighter restrictions in the future.
Denmark Economic GrowthThe economic downturn this year is set to be pronounced, although robust fiscal and monetary stimulus will help to temper the decline. Soft consumer confidence and a higher unemployment rate will drag on private consumption, while uncertainty over the global trade recovery poses a downside risk for exports. FocusEconomics analysts see the economy contracting 4.9% in 2020, which is up 0.2 percentage points from last month’s forecast, before growing 4.0% in 2021.
Denmark Economy Data
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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
September 10, 2020
Consumer prices decreased a seasonally-adjusted 0.38% in August over the previous month, swinging from the 0.78% increase recorded in July.
August 31, 2020
The economy plunged 6.9% in the second quarter in seasonally-adjusted quarter-on-quarter terms (Q1: -2.0% s.a qoq) as a result of the Covid-19 pandemic; the reading marked the steepest contraction since the start of the series in the early 1990s.
August 28, 2020
Business confidence among firms in the manufacturing sector decreased slightly to minus 10 in August, from July’s minus 7, thus remaining below the 0-point threshold separating pessimism from optimism among businesses.
August 24, 2020
Consumer prices increased a seasonally-adjusted 0.78% over the previous month in July, accelerating from the 0.10% increase recorded in June.
August 14, 2020
According to the preliminary release, GDP dived 7.4% in the second quarter in seasonally-adjusted quarter-on-quarter terms (Q1: -2.0% s.a qoq), reflecting the impact of Covid-19 and the measures implemented to contain it.