Danish economic growth likely to move higher in coming quarters, says Danske Bank

Denmark’s economic growth last year had come in 3.4 percent higher than anticipated earlier, which stemmed from higher GDP growth every year since the crisis, particularly in the past couple of years. This signifies that the Danish economic growth has passed the pre-crisis level in 2014. This suggests good news; however, it also implies that the Danish economy did not post any growth between 2007 and 2014 as a whole, noted Danske Bank in a research note.

The third quarter GDP flash numbers also show that Denmark’s economy continues to face challenges. The sequential growth came in at just 0.2 percent. However, this does not mean that this is more than a small bump in the way towards the economic upturn. The Danish economic growth is expected to move higher in the quarters ahead, said Danske Bank.

The upward revision of the Denmark’s economic growth is mainly driven by the fact that Statistics Denmark greatly accounts for the production of goods by Denmark’s businesses abroad and goods resold by Danish firms overseas, added Danske Bank.

Goods and services imports have also been upwardly revised; however, the net impact is an increased surplus on the trade balance that results in higher GDP. But exports could only be accounted for part of the revision. Increased public consumption in the past few years, particularly in hospitals, has also stimulated the Danish GDP growth, with additional business investment, stated Danske Bank.

Given the revised GDP figures, Denmark’s current state of economy seems considerably better; however, growth is still not impressive.