Denmark: Economy contracts notably in Q2
August 14, 2020
According to the preliminary release, GDP dived 7.4% in the second quarter in seasonally-adjusted quarter-on-quarter terms (Q1: -2.0% s.a qoq), reflecting the impact of Covid-19 and the measures implemented to contain it. The reading marked the steepest contraction since the start of the series in the early 1990s. Nevertheless, the economy performed better than the average for the Euro area (-12.1% s.a. qoq), likely due to less severe lockdown restrictions. In annual terms, the economy dived 8.5% in the second quarter in seasonally-adjusted terms (Q1: -0.2% yoy), also marking the lowest reading since at least the early 1990s.
The contraction appears to have been broad-based, although trade, transport, and hotels and restaurants were especially affected due to a decline in global demand. Employment levels declined 3.1% as a result of the contraction.
Author: Marta Casanovas , Junior Economist