Denmark’s economy grows with clouds visible on horizon
Consumers in Denmark appear to be spending less, but the economy nevertheless succeeded in growing during the second quarter of 2022.
New figures from national agency Statistics Denmark show that Denmark’s GDP increased by 0.9 percent in April, May and June this year.
The growth in the economy comes despite a drop in consumer spending, related to price increases and inflation.
An earlier calculation of GDP for the first quarter has meanwhile been revised from a reduction by 0.5 percent down to a 1.1 percent decrease.
Growth in the second quarter can be attributed largely to good results in the hotel and restaurant sector, according to Statistics Denmark. The sector was affected by Covid-19 restrictions during part of the first quarter, but these were later lifted.
A positive showing by the economy in the second quarter does not make challenging times ahead less likely, an analyst said.
“During the summer we have witnessed a change in temperature in the Danish economy. As such, you can say that today’s figures for the second quarter are a little dated,” senior economist with Sydbank, Mathias Dollerup, told news wire Ritzau.
“Gas and electricity prices have run amok over the summer, and barometers on several of our largest export markets are reporting saturation,” he said.
“With stormy weather in our export markets, the Danish economy is not going to escape a downturn in growth, because we are a small, open economy,” he said.
Finance Minister Nicolai Wammen is scheduled later on Wednesday to present his ministry’s economic projections for the rest of the year, as well as the government’s draft budget.
The ministry is expected to be less optimistic about the economy’s prospects for the remainder of 2022 than it was in May, when a previous projection was published.
The May projection of 3.4 percent growth will be adjusted to 2.8 percent, Ritzau reports.
Additionally, projections for 2023 downgrade expected growth of 1.9 percent to 0.8 percent for the year.
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New figures from national agency Statistics Denmark show that Denmark’s GDP increased by 0.9 percent in April, May and June this year.
The growth in the economy comes despite a drop in consumer spending, related to price increases and inflation.
An earlier calculation of GDP for the first quarter has meanwhile been revised from a reduction by 0.5 percent down to a 1.1 percent decrease.
Growth in the second quarter can be attributed largely to good results in the hotel and restaurant sector, according to Statistics Denmark. The sector was affected by Covid-19 restrictions during part of the first quarter, but these were later lifted.
A positive showing by the economy in the second quarter does not make challenging times ahead less likely, an analyst said.
“During the summer we have witnessed a change in temperature in the Danish economy. As such, you can say that today’s figures for the second quarter are a little dated,” senior economist with Sydbank, Mathias Dollerup, told news wire Ritzau.
“Gas and electricity prices have run amok over the summer, and barometers on several of our largest export markets are reporting saturation,” he said.
“With stormy weather in our export markets, the Danish economy is not going to escape a downturn in growth, because we are a small, open economy,” he said.
Finance Minister Nicolai Wammen is scheduled later on Wednesday to present his ministry’s economic projections for the rest of the year, as well as the government’s draft budget.
The ministry is expected to be less optimistic about the economy’s prospects for the remainder of 2022 than it was in May, when a previous projection was published.
The May projection of 3.4 percent growth will be adjusted to 2.8 percent, Ritzau reports.
Additionally, projections for 2023 downgrade expected growth of 1.9 percent to 0.8 percent for the year.
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