Denmark: Economic growth deteriorates in Q3
November 30, 2015
In the third quarter, the economy contracted a seasonally-adjusted 0.1% over the previous quarter, according to data released by Statistics Denmark (DST) on 30 November. The reading contrasted the 0.2% expansion tallied in the previous quarter and came in below the flat reading the markets had expected. In annual terms, GDP rose 0.9%, which marked a deceleration over the 2.0% decrease seen in Q2.
In Q3, private consumption grew 0.2%, which matched the previous quarter’s expansion. In addition, fixed investment expanded 0.8%, which was also in line with the previous quarter’s figure. Conversely, government consumption deteriorated from a flat reading in Q2 to a 0.3% contraction in Q3.
On the external side of the economy, exports of goods and services contracted 1.7% over the previous quarter, which followed the 2.9% decrease seen in Q2. However, imports expanded 0.5%, which contrasted the previous quarter’s 3.0% contraction. As a result, the external sector’s net contribution to overall economic growth decreased from plus 0.3 percentage points in Q2 to minus 1.1 percentage points in Q3.
Author: Dirina Mançellari, Senior Economist