Danske Sees Danish Growth Rates Recover on Global EconomyPeter Levring
Denmark’s economy will return to growth this year as consumers and the government boost spending, Danske Bank A/S said.
Gross domestic product will expand 0.4 percent this year and 1.5 percent in 2014, the largest Danish lender said in a report. The economy contracted 0.6 percent last year.
The $312 billion economy will be helped by a “brighter outlook” for global growth, during a time when the scope for economic stimulus is limited, Chief Economist Steen Bocian and other analysts said in the report.
“Monetary policy easing in the U.S. and Japan will have a positive impact on demand in Europe,” the economists said. “That’s where Denmark’s most important export markets are.”
Exports will rise 0.1 percent in 2013 and 3.2 percent in 2014. Consumer spending will grow 0.4 percent this year and 1.1 percent in 2014, Danske Bank forecast. Public spending will advance 1.2 percent this year while public investments will slide 10.3 percent.
Inventories, which reduced the economy by 0.5 percentage point last year, will be neutral for GDP this year, according to Danske Bank.