Denmark Unexpectedly in Recession, Joins Portugal in Europe

Denmark’s economy unexpectedly contracted for a second quarter, joining bail-out-reliant Portugal as the only other European nation in a recession, after consumers in the Nordic nation reduced spending.

Gross domestic product shrank 0.5 percent in the first quarter, as the government also cut spending amid a widening budget deficit. GDP contracted a revised 0.2 percent at the end of 2010, Copenhagen-based Statistics Denmark said today. Economists surveyed by Bloomberg had expected growth of 0.5 percent in the first quarter.