Denmark: Economy avoids technical recession in Q4
February 29, 2016
In the fourth quarter, the economy expanded a seasonally-adjusted 0.2% over the previous quarter, according to data released by Statistics Denmark (DST) on 29 February. The reading contrasted the 0.5% contraction tallied in the previous quarter. In annual terms, GDP rose 0.5%, which marked a slight deceleration over the 0.6% increase seen in Q3.
In Q4, private consumption contracted 0.1%, which contrasted the 1.0% growth observed in the third quarter. On the other hand, fixed investment rebounded from a 1.3% decrease in Q3 to a 0.9% expansion in Q4. Moreover government consumption contracted 0.2% in Q4, which was a slight improvement over the 0.3% contraction observed in the previous quarter.
On the external side of the economy, exports of goods and services expanded 0.1% over the previous quarter, which contrasted the 1.4% drop seen in Q3. Conversely, imports dropped 0.2%, which was a deterioration over the 0.4% increase tallied in the previous quarter. As a result, the external sector’s net contribution to overall economic growth increased from minus 0.9 percentage points in Q3 to plus 0.2 percentage points in Q4.
Author: Dirina Mançellari, Senior Economist