Denmark: First quarter economic growth revised upwards
June 29, 2012
In the first quarter, GDP expanded 0.4% in seasonally adjusted terms over the previous quarter, which was up from the previously estimated 0.3% rise and exceeded market expectations that had GDP unrevised. The quarterly reading contrasted the 0.4% decline seen in the last quarter of 2011. On an annual basis, the economy grew 0.3% (previously estimated: +0.2% year-on-year), above the 0.1% rise registered in the fourth quarter. Economic growth in the first quarter was fuelled by a strong expansion in fixed investment, which rebounded from a 0.9% contraction in the fourth quarter to a 3.9% rise in the first (previously estimated: +2.3% quarter-on-quarter). In addition, private consumption grew 0.3% over the previous quarter, which was unrevised from the previous estimate but below the 1.2% expansion tallied in Q4. The external sector's contribution to economic growth deteriorated markedly as exports of goods and services contracted 0.6% in the first quarter (previously estimated: +0.3% qoq). Imports, on the other hand, expanded 1.3% (previously estimated: +2.0% qoq). As a result, the external sector's net contribution to overall economic growth swung from a 0.7 points contribution in the fourth quarter to a 1.1 points detraction in the first.