Denmark’s current account surplus to reduce slightly in 2016 but remain above 6% of GDP

Denmark’s foreign trade surplus continues to be strong for both services and goods in spite of weak growth in export. Moreover, considerable gains in net wealth from the country’s net foreign asset have resulted in huge current account surplus. Denmark’s current account surplus reached 7% of the GDP at the end of 2015.

However, in 2016, the current account surplus is expected to be slightly lesser as imports are likely to be rise marginally due to increase in private consumption, according to Danske Bank.

“Nevertheless, we see the surplus remaining above 6% of GDP, which is still very high from a historical perspective”, adds Danske Bank.

Danish current account surplus approximately equates to the difference between investment and saving. Therefore, huge surplus in Denmark is not just due to saving, but also because of low investment activity.