Danish exports likely to recover slightly in future following weak growth

In the past year, Danish exports have been weak and had dropped 3.7 percent in the first quarter on a year-on-year basis. Very weak global trade growth in 2015 was one of the reasons for weak exports in Denmark.

The nation’s shipping exports declined significantly, whereas other services exports grew in 2015. But other services exports had declined in the first quarter. Exports of Danish goods have also been subdued, partially because of considerable slowdown of energy exports in the beginning of 2016, said Danske Bank in a research report.

In the second half of last year, Danish manufactured goods’ exports were weak; however, they seem to be rebounding again that aided in goods exports to grow 1.4 percent in the first quarter of 2016. Actually, global trade has been performing weakly as compared to the global economic growth. Earlier, 1 percent of global growth would stimulate global trade by further 2 percent.

In recent years, trade-heavy European economies have been growing quite slowly, adding to the moderate global trade growth. Therefore, global trade might recover as the European economies gather some momentum in the future, according to Danske Bank. Danish exports are thus likely to recover slightly.