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Denmark GDP Q2 2023

Denmark: Quarterly economic growth slows further in Q2

The Danish economy tapped on the breaks in the second quarter of 2023, when GDP expanded at a softer 0.2% quarter-on-quarter pace in seasonally adjusted terms, according to a preliminary estimate. The result came in below Q1’s 0.6% quarterly expansion and was the softest figure since Q3 2022. As such, the outturn was weaker than the Euro area average of 0.3%.

While detailed information is not yet available, the quarterly slowdown was likely due to weak activity in maritime transport, utilities and trade. Meanwhile, the pharmaceutical industry—which accounts for around 5% of GDP—supported growth. In particular, a recent demand boom for the Danish-produced Ozempic and Wegovy drugs that are used for weight loss has led pharmaceutical activity to skyrocket. Their manufacturer, Novo Nordisk, cashed in DKK 49 billion (around EUR 6.6 billion) in January–June 2023—an over 30% annual increase. The company’s market capitalization is now larger than the 2022 Danish GDP.

Elsewhere in the domestic economy, the employment indicator posted a 0.3% increase, which, coupled with alleviating pressures on purchasing power as inflation eased in Q2, will have supported consumer spending in the period. Robust public-sector activity also boosted growth.

Meanwhile, year-on-year growth also decelerated, coming in at 1.2% in the second quarter, below the 1.7% increase tallied in the prior quarter. The result more than doubled the Euro area’s 0.5% average rise.

A more comprehensive release will be published on 31 August.

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