Denmark GDP Q1 2016

Denmark

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.

The Central Bank expects GDP to grow 1.3% in 2016 and 1.8% in 2017. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.2% this year, which is down 0.1 percentage points from last month’s estimate. Next year, the panel sees the economy accelerating to 1.8%.


Author: Marlène Rump, Economist

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Denmark GDP Q1 2016

Note: Quarter-on quarter changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Statistics Denmark (DST) and FocusEconomics Consensus Forecast


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