Denmark Cuts 2013 Growth Forecast After Weak Economic Data

Denmark cut its growth forecast for 2013 after economic conditions worsened at the end of last year.

Gross domestic product will expand by 0.5 percent to 1 percent this year, the Economy Ministry said on its website. That compares with a December forecast of 1.2 percent growth.

“We still think there will be growth this year,” Economy Minister Margrethe Vestager said in the statement. “But because 2012 ended disappointingly, we go into 2013 with a lower GDP level than expected. That means we must cut our estimate for GDP growth in 2013.”

The Danish economy contracted 0.9 percent in the fourth quarter compared with the previous three months as consumers spent less and business investment stalled. The nation is struggling to surface from a housing bubble that burst in 2008, triggering a regional banking crisis.

The government’s latest estimate for 2013 growth is “very uncertain” and will depend on revised fourth-quarter data from the statistics office, due to be released on April 4, the ministry said.

To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at fschwartzko1@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.