Nice street in Denmark

Denmark GDP Q1 2020

Denmark: Economy contracts in Q1, worse to come in Q2

The economy shrank 2.1% in the first quarter in seasonally-adjusted quarter-on-quarter terms (Q4: +0.4% qoq, previously reported: +0.6% qoq) as Covid-19 hit activity. However, the contraction was less marked than the EU average (-3.3% qoq).

On the domestic front, private consumption was down 3.3% (Q4: +1.7% qoq), suppressed by containment measures. Fixed investment edged down 0.1% (Q4: +0.4% qoq), while government consumption fell 1.5% (Q4: +1.4% qoq), likely driven by the shutdown of some public-sector activities—including school closures.

On the external front, exports fell 0.8% (Q4: -0.5% qoq) amid lockdowns abroad, while imports dipped 0.1% (Q4: +0.1% qoq).

Looking ahead, the economic contraction will intensify markedly in Q2 due to lockdown measures. However, success at containing the virus has led the government to ease restrictions in recent weeks, which, coupled with generous fiscal support, should see a recovery in H2. Risks to the outlook are elevated due to uncertainty over the future evolution of the coronavirus outbreak and consumer spending habits as restrictions are lifted.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest