Danish Q3 GDP Growth Hits Almost 4-Year High

The Danish economy expanded by 1.5% quarter-on-quarter in the first quarter of 2026, falling short of initial estimates for a 1.9% growth but accelerating from a 0.5% expansion in the previous period. Despite the revision, the growth remained broad-based, with sectors beyond pharmaceuticals, including trade and transportation, contributing to the economy. Key driver was also stronger net trade, as exports rose 1.9% (vs 0.1% in Q4), while imports fell 1.5% (vs 0.5%). Household spending matched the previous quarter at 0.6%, supported by higher vehicle purchases as well as increased spending on clothing, footwear, and transport services. Meanwhile, government spending contracted sharply by 4.3% (vs 5.0%), while fixed investment fell 3.8% (vs 1.6%), weighed down primarily by declines in construction and civil engineering. On an annual basis, the economy grew by 6.2%, marking the strongest since Q4 2021, higher than initial estimates of 5.9% and the upwardly revised 3.2% expansion in Q4.

Denmark’s economy expanded 1.9% quarter-on-quarter in the first quarter of 2026 from a revised 0.5% in the previous period, according to preliminary estimates. The growth was driven by a strong improvement in the manufacturing sector, particularly supported by the pharmaceutical industry. Net external demand contributed positively as both exports (3.8% vs -0.3% in Q4) and imports (0.3% vs -0.7%) recovered. Private consumption also strengthened, with household spending rising (1.2% vs 0.7%) and total private consumption increasing (1.1% vs 0.7%). In contrast, government spending declined (-3.8% vs 5.1%), as well as for fixed investment (-3.5% vs 1.2%), weighed down by other building and construction (-6.4% vs 0.2%), and machinery (-3.6% vs 6.3%). On a yearly basis, GDP grew 5.9% in Q1 from 3.1% in the preceding period, marking the highest level since Q4 2021.

Denmark’s economy grew by 0.2% quarter-on-quarter in the fourth quarter of 2025, in line with preliminary estimates, but slowing from an upwardly revised 2.3% expansion in the previous quarter. Growth eased in household spending (0.5% vs 1.0% in Q3), while fixed investments contracted (-1.9% vs 1.6%), weighed down by declines in housing investments (-2.7% vs 2.3%) and intellectual property rights (-10.8% vs 3.8%), although investments in machinery, means of transport, etc. recovered (6.6% vs -2.9%). On the other hand, government spending increased (5.0% vs 1.4%). Net external demand also weighed on GDP, as exports dropped (-0.7% vs 3.7%) and imports contracted (-0.6% after stagnating in the previous quarter). On an annual basis, the economy expanded 3.1% in Q4, 0.1 percentage point higher than preliminary estimates, but slowing from a downwardly revised 3.9% growth in Q3.