Danske Cuts Growth Estimate for Danish Economy as Exports Shrink

The Danish economy will grow 0.1 percent this year, Danske Bank A/S (DANSKE) said, lowering its previous estimate for a 0.4 percent expansion as exports shrink amid a euro-area recession.

Exports will contract 0.8 percent this year, the Copenhagen-based bank said in a report published today, cutting a May 1 forecast for a 0.1 percent expansion. Gross domestic product will grow 1.5 percent in 2014, Danske said, repeating its previous estimate.

“Denmark’s economy is currently standing still,” Steen Bocian, chief economist at the bank, said in the report.

The $300 billion economy is struggling to emerge from a burst property bubble, which triggered a banking crisis and wiped out more than a dozen lenders since 2008. Denmark’s central bank on June 12 lowered its 2013 GDP forecast to 0.5 percent from 0.8 percent previously.

To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net

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

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