Denmark: Economy contracts less than initially estimated
September 28, 2012
In the second quarter, GDP contracted 0.4% in seasonally adjusted terms over the previous quarter, up from the 0.5% contraction initially estimated on 29 August. The decline contrasted the revised 0.4% expansion seen in the first quarter (previously reported: +0.3% quarter-on-quarter) and matched market expectations. On an annual basis, the economy contracted 0.6%, also revised upwards from the previously estimated 0.9% contraction. The milder contraction in Q2 came on the back of upward revisions to the domestic sector. Gross fixed investment contracted 3.6% over the previous quarter (previously reported: -4.2% qoq). In addition, private consumption decreased a softer 0.1% over the previous quarter (previously reported: -0.9% qoq), contrasting the 0.4% expansion recorded in Q1. The external sector's contribution to growth, in contrast, was revised down. Exports of goods and services rose 2.8% (previously reported: +2.5% qoq), while imports expanded 1.2% in the second quarter (previously reported: +0.8% qoq). Consequently, the external sector's net contribution to overall economic growth deteriorated slightly from the 0.9 percentage-point contribution initially reported to 0.8 percentage points.