Denmark: Economy rebounds in Q1
May 30, 2013
In the first quarter, GDP rose 0.2% in seasonally adjusted terms over the previous quarter according to preliminary estimates, contrasting the 0.9% contraction seen in the fourth quarter. Revised data will be published on 28 June.
The first quarter expansion came on the back of a rebound in private consumption, which increased 0.1% over the previous quarter, contrasting the 0.1% contraction recorded in Q4 2012. Government consumption, on the other hand, deteriorated to a 2.1% fall, which contrasted the 0.9% expansion recorded in Q4. In addition, gross fixed investment dropped 0.6% (Q4: +2.5% quarter-on-quarter).
The external sector remained depressed. Exports of goods and services dropped 0.4% in Q1, which marked an improvement over the 2.1% decline recorded in Q4, while imports increased 1.6% (Q4: -0.8% qoq). Consequently, the external sector's net contribution to overall economic growth deteriorated from minus 0.7 percentage points in the fourth quarter to minus 1.1 percentage points in the first.
The government expects the economy to expand 1.2% this year and 1.6% in 2014. Meanwhile, the Central Bank expects growth to reach 1.3% this year before accelerating to a 1.8% expansion in 2014. FocusEconomics Consensus Forecast panellists are less optimistic and expect economic growth to reach 0.8% in 2013, which is down 0.1 percentage points from last month's forecasts. For 2014, panellists expect an expansion of 1.5%.