Nice street in Denmark

Denmark GDP Q3 2023

Denmark: Economy enters technical recession in Q3

The Danish economy undershot market expectations and contracted further in the third quarter of 2023, after falling in Q2. GDP decreased at a rate of 0.3% quarter on quarter in seasonally adjusted terms in Q3, according to a preliminary estimate. The result matched Q2‘s and was the second consecutive GDP drop and joint-worst reading since Q1 2022. Q3’s downturn was steeper than the Euro area average of -0.1%.

While detailed information is not yet available, the quarterly decline was likely due to a poor-performing industrial sector, particularly the pharmaceutical industry—–which accounts for roughly 5% of the Danish economy and previously supported growth—contracted over 10%. Specifically, Novo Nordisk, Europe’s most valuable company and producer of popular diabetes and weight-loss drugs like Ozempic, sustained large manufacturing problems after growing over 30% year on year in H1 2023. Conversely, transport activity improved compared to the previous quarter.

Elsewhere in the domestic economy, the employment indicator posted a 0.3% increase, which, coupled with Q3’s downward trend in inflation, will have supported private spending in the quarter.

Meanwhile, year-on-year growth decelerated, coming in at 0.8% in the third quarter, below the 0.9% increase tallied in the prior quarter. The result was notably stronger than the Euro area’s 0.1% average rise.

A more comprehensive release will be published on 30 November.

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