Denmark: Economic growth softens in Q1 2023
The Danish economy started 2023 on a softer footing. GDP growth halved to 0.3% in seasonally adjusted quarter-on-quarter terms in Q1 (Q4 2022: +0.6% s.a. qoq), according to a preliminary estimate. Despite the moderation, the expansion was still stronger than the Euro area average.
While detailed information is not yet available, the quarterly deceleration was chiefly driven by a negative contribution from the construction sector. On the other hand, positive developments in the manufacturing and utility sectors—which include the electricity, water, gas and heating subsectors—supported overall GDP growth. Lastly, the employment indicator posted a 0.4% increase, which, coupled with cooling price pressures, should have supported consumers’ budgets somewhat.
Conversely, year-on-year growth accelerated to 2.2% in Q1, improving from the previous quarter’s 1.6% growth.
A more comprehensive release will be published on 31 May.