Danish Economy Shows Unexpected Resilience Amid Global Slowdown
Denmark’s economy posted a surprisingly strong growth rate in the second quarter, with manufacturing and exports showing resilience amid the global slowdown.
Gross domestic product rose 0.8% in the second quarter, according to a trend indicator from Statistics Denmark. The economy grew 0.1% in the first three months of the year, according to final estimates from the country’s statistical agency.
Tore Stramer at Nykredit described the latest estimate as a “big positive surprise,” but highlighted that the trend indicator carries a significant margin of error.
“The fact that especially exports and manufacturing have shown progress during a trade war and a decline in growth in our export markets is obviously remarkable,” Stramer said.
Las Olsen at Danske Bank warned that the Danish economy was unlikely to keep expanding at such a pace.
“Past experience shows that global developments catch up with us, and key figures from June already suggest reversals at the end of the second quarter,” Olsen said.
The trend indicator is a first estimate and carries a margin of error of more than 0.5 percentage points. Economists have in the past highlighted that Danish GDP data is particularly unreliable.
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