Denmark GDP


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.

The Central Bank estimates growth of 1.4% in 2014 and 2.0% in 2015. FocusEconomics Consensus Forecast panelists foresee economic growth of 1.5% in 2014, which is unchanged from last month’s forecast. For 2015, panelists expect an expansion of 1.9%.

Author: Angela Bouzanis, Senior Economist

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Denmark GDP Chart

Denmark GDP Q2 2014 1

Note: Quarter-on quarter changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Statistics Denmark (DST) and FocusEconomics Consensus Forecast

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