Danish GDP Growth Eases in Q4

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.

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.