Nice street in Denmark

Denmark Foreign Direct Investment (EUR bn)

A second national accounts release confirmed the economy dodged a sequential contraction in Q4 as GDP expanded 0.9%. The upturn was slightly below the preliminary estimate but still overshot our panelists’ expectations and improved from Q3’s flat result. Fixed investment, which expanded by over 11%, spearheaded the acceleration. Meanwhile, private consumption declined in Q4, although at a softer rate than in Q3. However, the economic setback was likely only delayed; challenges are mounting at the outset of 2023. The manufacturing PMI plunged to a seven-month low in February as conditions deteriorated sharply. In the fiscal arena, the government unveiled the 2023 budget proposal on 23 March. To fight inflation, it proposes restrictive fiscal policy and includes a DKK 2.4 billion (around EUR 322 million) aid package for vulnerable citizens. The plan also includes higher defense spending.

Denmark Foreign Direct Investment (EUR bn) Data

2017 2018 2019 2020 2021
Foreign Direct Investment (EUR bn) 3.1 1.5 6.3 2.6 4.9

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