Danish Economy Contracts in Third Quarter After Exports Slumpby
Denmark’s economy contracted in the third quarter as a drop in exports and stagnant domestic demand brought two years of expansion to an end.
Gross domestic product declined 0.1 percent from the second quarter following a 0.2 percent expansion in the previous period, the statistics office in Copenhagen said on Monday, citing preliminary data.
Exports slipped 1.7 percent in the third quarter after plunging 2.9 percent. Household spending, which makes up close to half of Danish output, was unchanged in the three months to September after falling 0.1 percentage.
The slump in Danish output is likely to be temporary, according to Sydbank chief economist Jacob Graven, as Danish GDP growth is set to accelerate to about 2 percent in 2016 amid growth-spurring low interest rates.