Denmark: Economy rebounds in the first quarter
May 31, 2012
In the first quarter, GDP expanded 0.3% in seasonally adjusted terms over the previous quarter, following the revised 0.2% decline seen in the fourth quarter (previously reported: +0.2% quarter-on-quarter). The quarterly reading, which defied market expectations of a 0.1% contraction, followed two consecutive contractions, and thus ended a technical recession. On an annual basis, the economy grew 0.2%, below the 0.4% expansion registered in the fourth quarter and in line with market expectations. The expansion in Q1 came on the back of strong domestic demand. Gross fixed investment expanded 2.3% over the previous quarter, contrasting the 0.2% contraction observed in the October-December period. Private consumption, however, increased 0.3% over the previous quarter, well below the strong 1.3% expansion recorded in Q4 2011. The external sector, in contrast, deteriorated notably as imports outpaced exports. Exports of goods and services rose 0.3%, only slightly above the 0.1% expansion recorded in Q4 2011, while imports rose a faster 2.0% in the first quarter (Q4 2011: -1.2% qoq). Consequently, the external sector's net contribution to overall economic growth swung from a 0.7 points contribution in the fourth quarter to a 0.9 points detraction in the first.