Denmark: Revised figures show no growth in Q1
June 28, 2013
In the first quarter, GDP was unchanged in seasonally adjusted terms over the previous quarter according to revised estimates. The reading marks a worsening compared to the advance estimate published on 30 May. Nevertheless, the figure marks an improvement over the 0.6% contraction in Q4 2012.
The revision in the first quarter came on the back of a further contraction in government consumption, which dropped 2.9% over the previous quarter, down from the 2.1% contraction previously reported. Moreover, gross fixed investment contracted 1.5% over the previous quarter, which represents a deterioration relative to the 0.6% fall previously estimated. Private consumption, on the other hand, rose an unrevised 0.1%.
The external sector improved compared to the initial estimate. Exports of goods and services were flat in Q1 (previously reported: -0.6%). Meanwhile, imports were not revised, rising 1.6%. Consequently, the external sector's net contribution to overall economic growth improved from minus 1.1 percentage points to a revised minus 0.9 percentage points.
The government recently revised down its growth estimates and now expects the economy to expand 0.5% this year and 1.6% in 2014. The Central Bank has also revised its growth estimates to 0.5% this year and a 1.7% expansion in 2014. FocusEconomics Consensus Forecast panellists are more optimistic and expect economic growth to reach 0.8% in 2013, which is down 0.1 percentage points from last month's forecasts. For 2014, panellists expect an expansion of 1.5%.