FX.co ★ Danish Q1 GDP Growth Rate Steeper than the Preliminary

In the first quarter of 2025, Denmark's economy experienced a contraction of 1.3% on a quarter-on-quarter basis, surpassing the initial estimate of a 0.5% decrease. This downturn followed a growth of 1.6% in the previous quarter, marking the first decline since the last quarter of 2022. The contraction was predominantly influenced by a downturn in the pharmaceutical sector. Additionally, net external demand had a negative impact: imports decreased by 6.5%, compared to a rise of 4.6% in the fourth quarter of 2024, while exports fell by 4.1%, down from an increase of 1.6%. Fixed investments also saw a significant decrease of 13.2%, after a 12.8% rise, due to reductions in machinery and transport equipment investments (-5.8% compared to a 4.0% increase previously) and intellectual property rights (-5.8% versus a 4.0% rise). Government spending declined by 1.9%, following a previous increase of 0.8%, and household consumption growth decelerated to 0.5% from 0.6%, partly because of a decrease in vehicle purchases (-0.3% as opposed to an earlier increase of 3.2%). Annually, the GDP saw a 2.3% rise in the second quarter of 2025, revised downward from an earlier estimate of 3.6%, following a 4.2% increase in the preceding quarter.