Denmark Disposable Income (ann. var. %)

Economy expands robustly in Q4; beats expectations of a marginal decline

The Danish economy smashed expectations for a second consecutive quarter at the close of 2022. GDP expanded 1.1% in seasonally adjusted quarter-on-quarter terms in Q4, according to a preliminary release. The result, which came in markedly above the prior quarter’s 0.3% growth, was the strongest in a year. It was also among the best in the Euro area. Conversely, year on year growth nearly halved to 1.7% from the prior quarter’s 3.2% increase. The result brought overall economic growth for 2022 to 3.4%, down from 2021’s rebound of 4.9%.

While detailed information is not yet available, the quarterly acceleration was chiefly driven by a strong performance from industry, especially the pharmaceutical sector. Additionally, continued improvement in transport and in culture and leisure contributed to growth. These more than offset declines and flat readings in other industries, such as trade and financing and insurance. Lastly, the employment indicator posted a 0.3% increase, which should have shielded consumers from elevated price pressures somewhat.

A more comprehensive release will be published on 28 February.