Denmark: Denmark's GDP growth accelerates in the first quarter
May 31, 2016
In the first quarter, the economy expanded a seasonally-adjusted 0.5% over the previous quarter, according to data released by Statistics Denmark (DST) on 31 May. The reading came in above the 0.1% expansion tallied in the previous quarter and overshot market expectations of a 0.1% increase. The acceleration was driven by strong domestic demand and a rebound in exports. In annual terms, GDP rose 0.1%, which marked a deceleration over the 0.4% increase seen in Q4.
In Q1, private consumption increased 0.6%, which contrasted the flat growth observed in Q4. Moreover government consumption rebounded to a 0.6% expansion in Q1, which marked the strongest increase in over two years. and contrasted the 0.3% contraction observed in the previous quarter. In addition, fixed investment was up from a 0.5% increase in Q4 to a 0.7% expansion in Q1.
On the external side of the economy, exports of goods and services expanded 0.6% over the previous quarter, which contrasted the 0.2% drop seen in Q4. Imports increased 0.1%, which was an improvement over the 0.3% decrease tallied in the previous quarter. As a result, the external sector’s net contribution to overall economic growth inched up from 0.1 percentage points in Q4 to 0.2 percentage points in Q1.