Denmark: Economy expands unexpectedly in Q3
November 28, 2014
In the third quarter, the economy expanded a seasonally-adjusted 0.5% over the previous quarter according to Statistics Denmark (DST). The reading was an improvement over the 0.1% expansion tallied in the previous quarter and overshot market expectations of a 0.1% contraction. In annual terms, GDP rose 0.9%, which was above the 0.2% expansion observed last quarter.
Fixed investment accelerated, expanding 1.2% in Q3 over the previous quarter, up from Q2’s 1.0% rise. In addition, government consumption improved, rising 0.1% (Q2: 0.0% quarter-on-quarter). However, private consumption deteriorated, swinging from a 0.5% expansion in Q2 to a 0.5% contraction in Q3.
Exports of goods and services fell 0.2% in Q3 over the previous quarter, which was an improvement over Q2’s 1.2% contraction. Imports fell 0.3%, which was a smaller contraction over Q2’s 0.4% decrease. As a result, the external sector’s net contribution to overall economic growth improved from minus 0.3 percentage points in Q2 to a flat reading in Q3.