Denmark’s Economy Contracted Less Than Previously Estimated
Denmark’s economy contracted less than previously estimated in the third quarter as the trade balance was revised higher, the statistics agency said.
Gross domestic product shrank 0.5 percent from the previous quarter, compared with a prior estimate of a 0.8 percent contraction, Copenhagen-based Statistics Denmark said today. Exports advanced 0.5 percent compared with 0.4 percent in last month’s report, while imports rose 0.9 percent compared with a previous estimate of 1.3 percent.
The Nordic region’s weakest economy is grappling with falling consumer spending caused by housing prices that have dropped to a six year-low and a banking crisis that has led to reduced lending. The statistics agency said today that private consumption fell 0.5 percent in the quarter, more than the 0.3 percent estimated last month.
“On the surface, today’s numbers paint a less bleak picture of the economy,” Tore Stramer, an economist at Nykredit Markets in Copenhagen, said in a note. “We expect that the economy will recover slightly in 2012. However, that requires a gradual improvement of the pessimistic view that’s weighing on the economy.”
Denmark’s consumer confidence index dropped to minus 9.8 this month, the lowest since March 2009, the agency said yesterday.
The economy grew 0.1 percent in the third quarter compared with the same period a year earlier, the agency said. That was revised from a 0.2 percent contraction in the Nov. 30 report.
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