Danish Economy Grows More Than Estimated as Demand Picks UpPeter Levring
Denmark’s economy grew more than estimated by economists in the last three months of 2014 as consumers spent more and exports rose.
Gross domestic product in the fourth quarter grew 0.4 percent from the previous three-month period, the Danish statistics office said in a statement. GDP was seen expanding 0.1 percent in the quarter, according to the median estimate of four economists surveyed by Bloomberg. The economy grew 1.3 percent from a year earlier.
“Fundamentally the economy is on the right path,” Helge Pedersen, chief economist at Nordea Bank AB in Copenhagen, said prior to the release. “The German economy, as well as the rest of the euro area, seems to be recovering now, which will help Denmark.”
The Danish government has said there’s no more room in the budget to stimulate the $300 billion economy. But Danes have benefited from record-low borrowing costs as their central bank defends the krone’s peg to the euro. Governor Lars Rohde’s efforts to prevent the krone appreciating beyond the confines of its peg to the euro have driven the benchmark deposit rate down to minus 0.75 percent.
“For now there’s no reason to be concerned the economy will overheat because of the extremely low rates,” Steen Bocian, the chief economist at Copenhagen-based Danske Bank A/S, said in a note to clients.
Denmark’s economy grew for a sixth consecutive quarter, recording the longest streak of growth in 10 years, according to the statistics office. The full-year expansion last year was the first since 2011.
Household spending rose 0.8 percent as more people got jobs and record-low rates buoyed house prices. Investment rose 1.6 percent as construction picked up and companies bought more machinery and trucks.