Denmark: Economy rebounds less than expected
November 30, 2012
In the third quarter, GDP expanded 0.1% in seasonally adjusted terms over the previous quarter according to preliminary estimates. The increase contrasted the revised 0.7% contraction seen in the second quarter (previously reported: -0.4% quarter-on-quarter) but undershot market expectations of a 0.3% expansion. On an annual basis, the economy contracted 0.5% in Q3, up from the 1.0% decline registered in the second quarter. Revised data will be published on 21 December. The expansion in Q3 came on the back of a rebound in fixed investment, which offset a negative contribution from the external sector. Gross fixed investment expanded 2.2% over the previous quarter, contrasting the 2.5% contraction observed in the April-June period. On a negative note, private consumption dropped 0.1%, contrasting the 0.2% expansion in the previous quarter, while government consumption increased 0.2% over the previous quarter, down from the 0.5% expansion recorded in Q2. The external sector deteriorated as imports outpaced exports. Exports of goods and services contracted 0.8%, contrasting the 2.4% expansion recorded in Q2, while imports decelerated to a mild 0.3% increase in the third quarter (Q2: +0.9% qoq). Consequently, the external sector's net contribution to overall economic growth swung from a 0.9 percentage-point contribution in the second quarter to a 0.6 percentage-point detraction in the third.