Denmark: Economy grows in Q3, beating market expectations of a shallow recession

Economic activity fared well during the third quarter of 2022; GDP posted a 0.5% seasonally adjusted quarter-on-quarter expansion, according to a preliminary release. The result, which beat expectations of a 0.5% contraction, came in slightly below the prior quarter’s 0.9% growth. The reading came in above the Euro area’s 0.2% quarterly expansion. Meanwhile, growth softened marginally to 3.6% on an annual basis from the second quarter’s 3.9% increase.

While detailed information is not yet available, the quarterly growth rate was primarily driven by continued improvements in the industry and services sectors. Other economic sectors were largely unchanged, restraining overall growth. Lastly, the employment indicator posted a marginal 0.1% increase, which may have provided some support to spending amid elevated price pressures.

A more comprehensive release will be published on 30 November.

FocusEconomics Consensus Forecast panelists see the economy expanding 0.6% in 2023, which is down 0.4 percentage points from the previous month’s forecast, and 1.9% in 2024.