Denmark: Economic growth decelerates slightly in Q1
May 29, 2015
In the first quarter, the economy expanded a seasonally-adjusted 0.4% over the previous quarter, according to data released by Statistics Denmark (DST) on 29 May. The reading was down slightly from the 0.5% expansion tallied in the previous quarter and met market expectations. In annual terms, GDP rose 1.5%, which matched the expansion tallied in the previous quarter.
Private consumption decelerated from a 1.1% increase in Q4 to 0.7% rise in Q1. Government consumption grew 0.6% in the first quarter, which was up from the weak 0.1% increase seen in Q4. In addition, fixed investment contracted 2.6% over the previous quarter, which contrasted Q4’s 2.1% increase.
Exports of goods and services expanded 2.0% in Q1 over the previous quarter, which contrasted the 0.4% contraction seen in the previous quarter. In addition, imports swung from a 0.5% contraction in Q4 to a 0.4% increase in Q1. As a result, the external sector’s net contribution to overall economic growth improved from 0.1 percentage points in Q4 to a 0.7 reading in Q1.
Author: Dirina Mançellari, Senior Economist