Sep 29, 2023
Denmark’s Economy Contracted in Second Quarter After Revision
Bloomberg News
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(Bloomberg) -- Denmark’s economy contracted in the second quarter instead of expanding as initially reported, with the boon from its pharmaceutical industry falling short to offset a broad-based weakening.
Gross domestic product contracted by 0.3% from the previous quarter, Statistics Denmark said on Friday in an updated estimate. A previous reading had put this at 0.3% growth. A decline in trade as well as financing and insurance drove the revision, the agency said.
The figures still received a significant positive boost from the drug industry, dominated by Novo Nordisk A/S, whose growth has prompted both the government and central bank to raise their economic forecasts for Denmark. GDP rose by 0.6% from the year-earlier period, but would have dropped by 1.5% without the contribution of drugmakers.
“It is a rather large revision, which is mainly due to the fact that imports were underestimated in the first place,” said Las Olsen, chief economist at Danske Bank A/S, in a note. With a shrinking economy outside the drug industry, employment is likely to drop in the near future, he said.
--With assistance from Joel Rinneby.
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