Denmark: Second estimate confirms economic growth eased in the third quarter
November 29, 2019
The economy grew 0.3% in seasonally-adjusted quarter-on-quarter terms in Q3 2019, easing from the 1.1% expansion registered in the second quarter (previously reported: +0.9% quarter-on-quarter), according to Statistics Denmark’s second GDP estimate. Meanwhile, in year-on-year terms, the economy grew 2.2% in Q3 (previously reported: +2.1%), up slightly from Q2’s downwardly revised 2.0% expansion (previously reported: +2.6% year-on-year).
The weaker outturn in the third quarter was mainly owing to a 2.8% decrease in gross fixed capital formation in seasonally-adjusted quarter-on-quarter terms (Q2: -0.9% qoq). Meanwhile, private consumption growth was stable at 0.3% in Q3, while government consumption was flat after declining 0.1% in Q2.
On the external front, exports of goods and services slumped from 4.8% in Q2 to 1.2% in the third quarter. Meanwhile, imports of goods and services increased 0.3%, down from the second quarter’s 1.3% expansion.
Looking ahead, economic growth should slow next year as fragile global and regional demand is expected to weigh on export growth. However, domestic demand should support growth as a tight labor market and robust wage growth seem set to stoke household spending and credit growth. Furthermore, the recent increase in housing prices will likely support construction investment.
Author: Steven Burke, Economist