Nice street in Denmark

Denmark GDP Q2 2021

Denmark: GDP rebounds in the second quarter

A second national accounts release confirmed that economic activity rebounded in the second quarter, increasing 2.3% on a seasonally-adjusted quarter-on-quarter basis (previously reported: +2.2% s.a. qoq) and swinging from the 0.9% contraction recorded in Q1. On an annual basis, economic growth was stronger than initially estimated, with GDP expanding 8.5% in the quarter (previously reported: +8.2% yoy) and contrasting the previous period’s 0.7% decrease. Consequently, Danish GDP surpassed its pre-pandemic levels in Q2.

Domestically, the improvement was broad-based. Private consumption grew 4.3% on a seasonally-adjusted quarter-on-quarter basis in Q2, contrasting the 5.1% contraction logged in Q1. Households likely released some precautionary savings as Covid-19 restrictions were lifted throughout the quarter, and the unemployment rate decreased sharply (Q2: 4.8%; Q1: 6.1%). Moreover, government spending rebounded, growing 2.5% in Q2 (Q1: -1.8% s.a. qoq). Lastly, fixed investment also returned to growth, increasing 3.7% and contrasting the 3.8% decrease recorded in the prior quarter.

Meanwhile, the external sector dragged on overall growth in Q2. Exports of goods and services swung to a 2.5% contraction in the quarter (Q1: +3.8% s.a. qoq). Conversely, imports of goods and services bounced back, growing 0.2% (Q1: -4.0% s.a. qoq).

Moving forward, momentum will have likely spilled over into Q3, as authorities plan to fully reopen the economy in early September—despite an uptick in infection rates—as the vaccination campaign continues to swiftly progress. The unemployment rate continued to fall in July, while consumers became increasingly more optimistic in July–August, boding well for household consumption. Moreover, business sentiment was also upbeat in the same two-month period, likely supporting investment in the quarter.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest