Denmark: Flash estimate shows economic growth revved up in second quarter
August 14, 2019
According to Statistics Denmark’s preliminary GDP estimate which is based on production data, the economy grew 0.8% in seasonally-adjusted quarter-on-quarter terms in Q2 2019, accelerating from the 0.1% expansion registered in the first quarter. In year-on-year terms, the economy grew 2.1% in Q2, up from Q1’s 1.9% expansion. The preliminary reading should be taken with a pinch of salt, however, given that Statistics Denmark estimates uncertainty regarding the final print to be at least plus or minus 0.5 percentage points.
The stronger outturn in Q2 was driven by a pick-up in industrial production, despite the sharp month-on-month decline in June, while construction activity also gained steam. Moreover, foreign trade contributed to the acceleration, underpinned by robust exports of services, particularly for maritime services. On the other hand, merchandise exports continued to falter in the quarter, likely dragged on by mounting headwinds from the U.S.-China trade dispute and a downturn in the Eurozone.
Comprehensive Q2 data will be published on 30 August.
Author: Lindsey Ice, Economist