Denmark: Economic growth decelerates in Q2
August 31, 2015
In the second quarter, the economy expanded a seasonally-adjusted 0.2% over the previous quarter, according to data released by Statistics Denmark (DST) on 31 August. The reading was down from the 0.5% expansion tallied in the previous quarter and met market expectations. In annual terms, GDP rose 2.0%, which marked an acceleration over the 1.5% increase seen in Q1.
In Q2, private consumption swung from a 0.6% increase in Q1 to a 0.4% contraction, thus recording the steepest decrease since Q2 2013. In addition, in the second quarter, government consumption contracted 0.2% (Q1: +1.2% quarter-on-quarter). Conversely, fixed investment recovered and expanded 0.8%, which contrasted the 3.1% drop seen in Q1.
On the external side of the economy, exports of goods and services contracted 2.2% over the previous quarter, which contrasted the 1.8% increase seen in Q1. Moreover, imports dropped 3.4%, which was a deterioration over the 0.2% decrease seen in Q1. As a result, the external sector’s net contribution to overall economic growth decreased slightly from 1.0 percentage points in Q1 to 0.8 percentage points in Q2.
Author: Dirina Mançellari, Senior Economist