Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Danish economic growth expands in Q3 2018 on industrial production and construction

The Danish economy expanded strongly in the third quarter, driven by industrial production and construction. According to Statistics Denmark’s flash estimate, the Danish economy grew 0.7 percent on a sequential basis and grew 2.1 percent year-on-year.

Growth is mainly linked to a solid progress in industrial production, as well as good growth in construction. The service sector also added to the progress, while there are issues in agriculture and mineral resources.

The continued solid labor market development will, in combination with increasing house prices, give a strong foundation for the development of private consumption. There is reason to expect that invest activity can added to further progress, noted Nordea Bank in a research report. Meanwhile, there are still dark clouds of exports in the light of the trade war that impacts the international economy to a certain degree.

Nevertheless, it is worth remembering that there are notoriously major revisions to Denmark’s growth and not least for an indicator series. Based on the figures released today, growth might reach around 1 percent in 2018, but it is artificially low because the first quarter of 2017 came to an exceptionally high growth because of patent sales to abroad which alone lifted growth last year by 0.4 percentage points, said Nordea Bank.

Everything suggests that the economy will continue to create around 3000-4000 new jobs per month, which signifies that the ongoing debate about a rising shortage of skilled labor can be even more intense.

“Denmark is also well-placed in an international comparison. Growth in Denmark was thus higher than in the EU in the third quarter - and in line with EU growth for the first three quarters of this year seen as a whole”, stated Nordea Bank.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.