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ECONOMY

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

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

Denmark’s second quarter GDP drop 'less than previous estimate'
Photo: Mads Nissen/Ritzau Scanpix

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.

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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SAS

‘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. 

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