Denmark

RGE's Q1 2010 Denmark Outlook

Denmark, the first EU member to enter into recession, is going through a long and deep downturn. Before the global slump hit the economy in the latter half of 2008, the economy was already in contraction as the overheated property market began to correct in 2007. Since early 2006, the Danish economy has contracted more than the other Nordic economies. In Q2 2009, GDP decreased by 2.6% q/q—the biggest contraction in over three decades—but returned to growth in Q3 (0.6% q/q) with the help of public consumption. Due to weak prospects for both private consumption and external demand, RGE expects the economy to grow a moderate 0.7% in 2010, after a contraction of nearly 5% last year. As a point of comparison, Denmark’s annual GDP growth rates averaged 2.2% in the decade to 2007.

Private consumption tumbled in the year to Q2 2009, contracting more than 6% y/y. The equivalent figure for the euro area, by contrast, was just over 1%. Danish private consumption...

Read the Q1 2010 Denmark Outlook.