Denmark: Flash estimate suggests economic growth ebbed in Q1
May 15, 2019
GDP grew 0.3% in seasonally-adjusted quarter-on-quarter terms in Q1 2019, down from the 0.8% increase registered in the fourth quarter last year, according to a flash estimate released on 15 May. However, given that Statistics Denmark estimates uncertainty regarding Q1’s final print to be at least plus or minus 0.5 percentage points, the preliminary reading should be taken with a pinch of salt. In year-on-year terms, the economy grew 2.2% in Q1, down from Q4’s 2.6% expansion.
The services sector was an important contributor to growth in the quarter. Moreover, both public and private sector employment grew at a moderate pace in the first quarter, while confidence indicators for the services sector were in positive territory. Although a breakdown by expenditure has yet to be released, mild retail sales growth and slightly stronger inflationary pressures point to fairly muted private consumption.
Comprehensive Q1 data will be published on 29 May.
Author: Steven Burke, Economist