Denmark Gets Investment Boost Leading to Growth in Q3

Denmark’s economy unexpectedly grew last quarter after companies stepped up investments, offsetting a decline in household spending and exports.

Gross domestic product expanded 0.5 percent from the previous three-month period, the Danish statistics office said today in a statement. Economists surveyed by Bloomberg had foreseen a 0.1 percent decline from the second quarter. GDP grew 0.9 percent from a year earlier.

Denmark’s government has said there’s no more room in the budget to stimulate the $300 billion economy as households spend less and exporters struggle to adapt to lackluster demand in the rest of Europe. Denmark exports about half its output. The central bank uses policy to keep the krone pegged to the euro, leaving it no leeway to adjust rates to steer demand.

Household spending dropped 0.6 percent in the third quarter from the second while exports declined 0.2 percent, the office said today. Fixed investments rose 1.2 percent after increasing 1 percent in the second quarter.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza