Denmark: Economy contracts in Q2
August 29, 2014
In the second quarter, the economy contracted a seasonally-adjusted 0.3% over the previous quarter according to Statistics Denmark (DST). The reading contrasted the 0.6% expansion tallied in the previous quarter. In annual terms, GDP fell 0.1% over which contrasted the 1.2% expansion observed last quarter.
Q2’s decline came on the back of decreasing fixed investment, which swung from a 3.7% quarterly expansion in Q1 to a 1.1% contraction in Q2. In addition, private consumption slowed markedly from a 1.5% expansion in Q1 to a 0.3% increase in Q2. On the upside, government consumption rebounded to a 0.7% increase in Q2 (Q1: -1.0% quarter-on-quarter).
Exports of goods and services fell 1.6% over the previous quarter—the lowest pace of growth since Q2 2009. Imports expanded 0.3% in Q2, which nevertheless marked a deterioration over the 5.2% increase tallied in Q1. As a result, the external sector’s net contribution to overall economic growth improved slightly from minus 1.9 percentage points in Q1 to minus 1.0 percentage points in Q2.