Danish GDP Growth Softest in Over a Year

The Danish economy grew by 0.3% quarter-on-quarter in Q2 2026, easing from a 1.5% expansion in the previous period, according to preliminary estimates. This marked the softest growth since a contraction in Q1 2025. Household consumption fell 0.3% (vs 0.5% in Q1), with vehicle purchases declining 2.2% (vs 12.4%). Public consumption also edged down 0.1% (vs -4.4%). In net trade, exports rose 0.9% (vs 2.2%), while imports grew at a faster 1.1% (vs -0.8%). Meanwhile, gross fixed capital formation grew 0.8% (vs -5.1%), driven by a 9.5% increase in other construction and engineering (vs -9.7%) and a strong rise in capital investment, partly offset by an 8.4% decline in investment in means of transport. On the production side, the pharmaceutical industry made only a limited contribution after driving much of the increase in the first quarter. On a yearly basis, GDP grew 4.6% in Q2, moderating from a 5.9% expansion in Q1, while growth for the first half of 2026 stood at 5.3%.

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.