Denmark: Revised figures see Denmark tip into technical recession
March 30, 2012
In the fourth quarter, GDP contracted a revised 0.1% in seasonally adjusted terms over the previous quarter, mirroring the 0.1% decline seen in the third quarter. According to the revised data, the economy entered into a technical recession in the final quarter of 2011, dashing hopes of an economic recovery. On an annual basis, however, the economy grew a revised 0.4% (previously reported: 0.7% year-on-year), faster than Q3's 0.1% expansion. For the full year 2011, the economy grew 1.0%, slower than the 1.3% expansion recorded in 2010. The contraction in Q4 was attributable to weaker than initially reported domestic demand and decreasing inventories. Private consumption swung from a 0.4% contraction in the third quarter to a 1.0% expansion in the fourth (previously reported: 1.3% quarter-on-quarter). Gross fixed investment, however, contracted 0.4% over the previous quarter, contrasting the 1.6% increase seen in the July-September period. The external sector improved somewhat as exports outpaced imports. Exports of goods and services rose 0.2%, slower than the 0.4% increase in the previous quarter, while imports swung from a 0.8% increase in the third quarter to a 1.2% contraction in the fourth. On 21 March, the Central Bank revised its economic growth forecast for this year from 1.1% to 1.2%. For 2013, the Bank expects the economy to expand 1.6%. The Finance Ministry, however, expects GDP to expand 1.0% this year and 1.4% the next, according to its latest forecast in December.