Denmark: GDP grows on improving fixed investment
December 20, 2013
In the third quarter of 2013, GDP expanded a seasonally-adjusted 0.4% over the previous quarter, according to revised estimates released on 20 December. The figure mirrored both the preliminary estimate and market expectations. However, it did come in below the revised 0.5% expansion recorded in the second quarter (previously reported: +0.6% quarter-on-quarter).
Q3's result came on the back of improving fixed investment, which expanded 2.7% (previously reported: +3.9% qoq). Total consumption rose 0.1% in Q3 due to a slowdown in private consumption, which contracted 0.2% (previously reported: -0.1% qoq). Government consumption was revised up from a 0.6% increase to a 0.7% increase.
Exports of goods and services increased 1.5% in the third quarter (previously estimated: +0.9% qoq), while imports grew 3.4% (previously reported: +3.0% qoq). As a result, the external sector's net contribution to overall economic growth was revised up from the previously-estimated minus 1.3 percentage points to minus 1.1 percentage points.
The government expects the economy to expand 1.6% in 2014. The Central Bank estimates growth of 1.6% in 2014. FocusEconomics Consensus Forecast panelists are more optimistic and expect economic growth of 1.4% in 2014, which is unchanged from last month's forecast. For 2015, panelists expect an expansion of 1.8%.
Author: Dirina Mançellari, Senior Economist