Danish consumers appear to be spending less, but the economy still managed to grow in the second quarter of 2022.
Published: Aug 31, 2022 11:10 CEST
The Danish economy saw growth in the second quarter of 2022 despite a decline in consumer spending. File photo: Maria Albrechtsen Mortensen/Ritzau Scanpix
Danish GDP increased by 0.9% in April, May and June of this year, according to new statistics from Statistics Denmark.
Economic growth comes despite lower consumer spending associated with rising prices and inflation.
Meanwhile, the previous calculation of GDP in the first quarter was revised from a decline of 0.5% to a decline of 1.1%.
According to Statistics Denmark, growth in the second quarter was primarily due to the strong performance of the hotel and restaurant sector. The sector was hit by Covid-19 restrictions for part of the first quarter, which were later lifted.
One analyst said that even a positive economic outcome in the second quarter would not make difficult times ahead less likely.
“We have seen a change in temperature in the Danish economy this summer, so today’s second quarter numbers are a bit outdated,” Matthias Drupp, senior economist at Sidbank, told the newswire Ritzau.
“Gas and electricity prices have run wild over the summer, with barometers for some of the largest export markets reporting saturation,” he said.
“With stormy weather hitting our export markets, the Danish economy cannot escape slowing growth because we are a small and open economy,” he said.
Finance Minister Nikolai Wamen is due later on Wednesday to present the Treasury’s economic forecasts for the remainder of the year and the government’s proposed budget.
The ministry is expected to be less optimistic about the economic outlook for the rest of 2022 than it was in May when its previous forecast was released.
Ritzau reports that May’s forecast of 3.4% growth will be adjusted to 2.8%.
Furthermore, the forecast for 2023 cuts the expected annual growth rate from 1.9% to 0.8%.
https://www.thelocal.com/20220831/denmarks-economy-grows-with-clouds-visible-on-horizon/ Denmark’s economy grows with clouds visible on the horizon