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Denmark’s second quarter GDP drop 'less than previous estimate'

Ritzau/The Local
Ritzau/The Local - [email protected]
Denmark’s second quarter GDP drop 'less than previous estimate'
Photo: Mads Nissen/Ritzau Scanpix

The Danish economy shrank less than was previously estimated in the second quarter of 2020, according to revised Gross Domestic Product (GDP) figures.

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Denmark's GDP – one of the main indicators of the health of the national economy – was recently reported to have fallen by 7.4 percent in the second quarter of 2020 compared with the first quarter.

But a new review from Statistics Denmark now estimates the decrease in GDP for Q2 to be 6.9 percent.

Although the size of the downturn has been revised downwards it still represents the biggest drop since the beginning of the 1990s, when quarterly results were first recorded by Statistics Denmark.

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But the more optimistic estimate may reflect more activity in the Danish economy than previously thought, economists have said.

“The economy is fortunately moving a bit more again. Several key metrics have shown signs of increased activity during the summer,” Confederation of Danish Industry (Dansk Industri) economist Allan Sørensen said in a written comment.

“Turnover in shops is already back at normal levels,” he added.

“Exports and investments will take longer to recover,” he noted however.

GDP figures from Statistics Denmark are preliminary and are finalised as more information comes in.

READ ALSO: What does Denmark's GDP drop tell us about jobs and the economy?

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