Danish economy avoids global uncertainty, so far

Denmark’s economy grew by 1.1 percent in 2018, according to a Statistics Denmark estimate. Analysts have described the figure as encouraging.

Danish economy avoids global uncertainty, so far
File photo: Kasper Palsnov/Ritzau Scanpix

The figure is indicative and dependent on a number of uncertain factors, with several aspects yet to be accounted for.

In the last three months of 2018, the economy grew by 0.8 percent more than in the preceding quarter.

Growth in both industry and transport were important contributors to the result, according to Statistics Denmark.

Economists said the figures were a good sign for Denmark, particularly given that large economies such as China and Germany saw a challenging end to 2018.

“This is pleasing, taking into account the slow-down in the German economy and increasing international uncertainty in the same period,” Confederation of Danish Industry lead economist Morten Granzau told Ritzau.

Last year was, in fact, a better year for Denmark’s economy that the figure of 1.1 percent suggests, according to Anders Christian Overvad, an economist with bank Arbejdernes Landsbank.

A nine-billion-kroner sale of a patent in 2017, which swelled figures for that year; and last year’s poor harvest following a dry summer, both had unusual negative effects on growth, according to Overvad.

But Denmark could still be affected by global trade tensions, the economist said.

“Political uncertainty is playing a key role. If the trade war between the United States and China escalates further, that will be felt by world trade and thereby Danish export,” he said.

Global growth is also slowing down, Overvad added, with foreign companies less optimistic than in the past, another factor that could affect Danish exporters.

READ ALSO: Unemployment falls in Denmark for ninth consecutive month

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


‘We agree to disagree’: Still no progress in marathon SAS strike talks

By lunchtime on Friday, talks between the Scandinavian airline SAS and unions representing striking pilots were still stuck on "difficult issues".

'We agree to disagree': Still no progress in marathon SAS strike talks

“We agree that we disagree,” Roger Klokset, from the Norwegian pilots’ union, said at lunchtime outside the headquarters of the Confederation of Swedish Enterprise in Stockholm, where talks are taking place. “We are still working to find a solution, and so long as there is still some point in continuing negotiations, we will do that.” 

Mats Ruland, a mediator for the Norwegian government, said that there were “still several difficult issues which need to be solved”. 

At 1pm on Friday, the two sides took a short break from the talks for lunch, after starting at 9am. On Thursday, they negotiated for 15 hours, breaking off at 1am on Friday morning. 

READ ALSO: What’s the latest on the SAS plane strike?

Marianne Hernæs, SAS’s negotiator on Friday told journalists she was tired after sitting at the negotiating table long into the night. 

“We need to find a model where we can meet in the middle and which can ensure that we pull in the income that we are dependent on,” she said. 

Klokset said that there was “a good atmosphere” in the talks, and that the unions were sticking together to represent their members.

“I think we’ve been extremely flexible so far. It’s ‘out of this world’,’ said Henrik Thyregod, with the Danish pilots’ union. 

“This could have been solved back in December if SAS had not made unreasonable demands on the pilots,” Klokset added. 

The strike, which is now in its 12th day, has cost SAS up to 130m kronor a day, with 2,550 flights cancelled by Thursday, affecting 270,000 passengers.