Denmark: Economy rebounds in the last quarter of 2011
March 1, 2012
In the fourth quarter, GDP expanded 0.2% in seasonally adjusted terms over the previous quarter, following the revised 0.1% decline seen in the third quarter (previously reported: -0.5% quarter-on-quarter). The reading matched market expectations, which foresaw GDP rebounding from the third quarter contraction. On an annual basis, the economy grew 0.7%, well above the flat reading registered in the third quarter. For the full year 2011, the economy grew an estimated 1.0%, slower than the 1.3% expansion recorded in 2010. The expansion in Q4 came on the back of stronger domestic demand. Total consumption swung from a 0.8% contraction in the third quarter to a 0.8% expansion in the fourth, driven by a robust 1.3% rise in private consumption. Gross fixed investment, however, contracted 0.6% over the previous quarter, contrasting the 0.9% increase in the July-September period. The external sector also improved somewhat as exports outpaced imports. Exports of goods and services rose 0.4%, equalling the previous quarter's pace, while imports swung from a 1.0% increase in the third quarter to a 1.3% contraction in the fourth.