Denmark: Economic growth decelerates in the second quarter of 2026
Q2 clocks over one-year low: Denmark’s GDP expanded 0.3% in seasonally adjusted quarter-on-quarter terms in Q2, following downwardly revised 1.5% growth in the previous quarter. Q2’s reading was the weakest since Q1 2025. Unlike last quarter, when pharmaceuticals were the main driver of growth, the sector contributed little in Q2. Instead, growth was supported by other industries, including wind turbine production, which appears to be regaining importance as a key driver of the Danish economy.
In annual terms, GDP expanded 4.6% in Q2, following a 6.1% expansion in the previous quarter.
Private spending falls and exports lose steam: Relative to the previous period’s data, figures in Q2 worsened for private consumption (-0.2% on a seasonally adjusted quarter-on-quarter basis vs +0.5% in Q1) and exports of goods and services (+0.9% vs +2.2% in Q1). In contrast, readings picked up for government consumption (-0.1% vs -4.4% in Q1), fixed investment (+0.8% vs -5.1% in Q1) and imports of goods and services (+1.1% vs -0.8% in Q1).
The contraction in household consumption was driven by lower spending on beverages and tobacco, electricity and heating, and leisure and culture. That said, fixed investment growth was supported by stronger non-residential construction and capital investment, with the latter partly reflecting a low base after Q1’s sharp decline.
Pharma sector to remain key driver ahead: Global trade uncertainty and weak demand in key foreign markets are likely to limit export growth across most industries ahead. Performance will nonetheless remain closely tied to the pharmaceutical sector, which continues to play a key role in driving Denmark’s exports. In Q3, sequential GDP growth is seen hovering close to Q2’s reading, while GDP growth is seen slowing from 2025 in 2026 as a whole.