GDP growth defies expectations in Q4
A second national accounts release revealed the Danish economy tallied a 0.9% seasonally adjusted quarter-on-quarter expansion in the final quarter of 2022. While the result came in slightly below the preliminary estimate of 1.1% growth, it was still an improvement from the flat result recorded in Q3.
Domestically, the quarterly acceleration was chiefly due to fixed investment growth accelerating to 11.6% in Q4 from the 1.6% expansion logged in the previous quarter. Meanwhile, public spending slid at a slower rate of 0.1% in Q4 (Q3: -1.8% s.a. qoq). Similarly, private consumption declined at a milder pace of 0.4% seasonally adjusted quarter-on-quarter in Q4 from a 0.7% contraction in Q3. The marginal fall in the unemployment rate and stronger nominal wage growth aided consumers’ budgets in the face of elevated price pressures in the period, likely preventing a sharper fall.
Meanwhile, exports of goods and services contracted 1.8% in Q4, marking the worst result since Q2 2020 (Q3: +2.3% s.a. qoq). Conversely, imports of goods and services rebounded, growing 0.7% in Q4 (Q3: -0.5% s.a. qoq).
On an annual basis, economic growth moderated to 1.5% in Q4 from the previous quarter’s 3.7% growth. Q4’s reading marked the softest growth since Q1 2021. This brought the overall growth rate for 2022 to 3.6%, down from the 4.9% post-pandemic rebound in 2021.
Denmark GDP (DKK bn) Data
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