Danish Q4 GDP Growth Eases

Denmark’s economy grew 0.2% quarter-on-quarter in the fourth quarter of 2025, easing from an upwardly revised near four-year high of 2.3% in the previous period, according to preliminary estimates. Growth was pressured by a slowdown in the pharmaceutical industry, which contributed -1.1 percentage points to gross value added. Net external demand also contributed negatively, as exports fell faster (-0.5% vs 3.6% in Q3) than imports (-0.4% vs -0.1%). At the same time, fixed investment fell (-2.7% vs 1.2%), weighed down by sharp declines in investment in housing (-3.1% vs 2%) and intellectual rights (-11.4% vs 3.7%), while household consumption also slowed (0.2% vs 0.6%). Meanwhile, government spending rose significantly, by 5.6% compared with 1.2% in the previous period. On a yearly basis, GDP expanded 3.0%, following a downwardly revised 3.9% increase in the preceding period. For the full year of 2025, GDP rose 2.9%.

Denmark’s economy expanded by 2.2% quarter-on-quarter in the third quarter of 2025, lower by 0.1 percentage points than initial estimate, but accelerating from an upwardly revised 1.3% growth in the previous period. This marked the fastest expansion since the fourth quarter of 2021, primarily driven by strong performance in the pharmaceutical industry. Other contributors to GDP growth include the information and communication industry and public administration and services. Net external demand also contributed positively, as exports increased (3.5% vs 4% in Q2), while imports decreased (-0.1% vs 2.7%). Additionally, both government (1% vs 0.5%) and household spending (0.3% vs 0.2%) rose further, while fixed investments rebounded (0.8% vs -0.2%), as housing (2.9% vs -1.5%) and intellectual rights (2.5% vs -2.8%) recovered. Annually, the GDP grew by 4% in Q3, the strongest in three quarters, following a 2% gain in the preceding quarter.

Denmark’s economy grew by 2.3% quarter-on-quarter in the third quarter of 2025, accelerating from an upwardly revised 1.2% expansion in the previous period, according to preliminary estimates. This marked the strongest growth since the fourth quarter of 2021, primarily driven by significant gains in industry, with the pharmaceutical sector leading the way. Strong performance in pharmaceuticals also supported net external demand, as exports rose 4.1% (vs 3.8% in Q2) while imports fell 0.2% (vs 2.5%). Additionally, government spending rose by 0.9% (vs 0.4%), while fixed investment increased modestly (0.1% vs 0%), supported by recoveries in investment in housing (1.9% vs -1.5%) and intellectual rights (0.3% vs -2.5%). Meanwhile, household consumption remained steady (at 0.1%). On a yearly basis, the GDP expanded by 3.9%, the largest growth for the year, following an upwardly revised 2% gain in the preceding period.