Denmark GDP Q1 2016


Denmark: GDP accelerates in the first quarter

June 30, 2016

In the first quarter, GDP expanded a revised seasonally-adjusted 0.7% over the previous quarter (previously reported: +0.5% quarter-on-quarter), according to data released by Statistics Denmark (DST) on 30 June. The reading is above the 0.2% contraction tallied in the previous quarter and overshot market expectations of a 0.1% increase. The acceleration was driven by a strong expansion in exports and total consumption. In annual terms, GDP dropped 0.1% in Q1, which marked a slight decrease over the flat growth rate seen in Q4.

In Q1, private consumption increased 0.6%, which contrasted the weak growth observed in Q4. Moreover, government consumption rebounded to a 0.8% expansion in Q1 from the 0.7% contraction registered in the previous quarter, marking the strongest increase in over two years. In addition, fixed investment decelerated from a 1.5% expansion in Q4 to a 0.4% increase in Q1.

On the external side of the economy, exports of goods and services grew 0.7% over the previous quarter, marking an improvement over the flat reading seen in the previous quarter. Imports growth remained unchanged, which represented a deterioration over the 0.9% rise tallied in Q4. As a result, the external sector’s net contribution to overall economic growth increased from minus 0.5 percentage points in Q4 to plus 0.4 percentage points in Q1.

The Central Bank expects GDP to grow 1.0% in 2016 and 1.6% in 2017. FocusEconomics Consensus Forecast panelists expect GDP to expand 1.1% this year, which is down 0.1 percentage points from last month’s estimate. Next year, the panel sees the economy accelerating to 1.6%.

Author:, Economist

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Denmark GDP Chart

Denmark GDP Q1 2016 0

Note: Quarter-on quarter changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Statistics Denmark (DST) and FocusEconomics Consensus Forecast

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