Danish GDP Growth Slows as Exports, Consumer Spending Drop

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Denmark’s economic expansion slowed as both exports and household demand declined.

Gross domestic product grew 0.2 percent in the second quarter from 0.5 percent in the first, the statistics office in Copenhagen said on Monday, citing preliminary data.

“This isn’t a strong number in any way,” said Nordea Chief Economist Helge Pedersen.

Exports plunged 2.2 percent after growing 1.8 percent in the first three months of 2015. Household spending fell 0.5 percent after rising 0.6 percent.

The GDP report comes a week after the government cut its forecast for economic expansion to 1.5 percent this year and 1.9 percent in 2016, citing a slow recovery in domestic demand.

Finance Minister Claus Hjort Frederiksen, who took office this summer after the Liberal Party formed a government following June elections, said Denmark needs to cut spending as declining oil prices and a rout in securities markets will reduce more than 20 billion kroner (3 billion dollars) from revenue.

Second-quarter growth was driven by fixed investment, which rose 0.8 percent, and by a 0.2 percent increase in inventories.

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