Danish GDP Growth Revised Higher in Q2

Denmark’s economy grew by 0.9% quarter-on-quarter in Q2 2026, up sharply from the preliminary estimate of 0.3%, but easing from a 1.5% growth in the previous quarter. Household consumption was unchanged (vs 1.2% in Q1), while vehicle purchases fell 1.8% (vs 12.7%). Public consumption was also flat (vs -4.0%). In external trade, exports increased 1.5% (vs 2.3%), while imports rose 1.8% (vs -0.3%). Gross fixed capital formation grew 1.5% (vs -5.2%), supported by an 8.6% increase in other construction and engineering. This was partly offset by a 4.6% decline in investment in machinery, transport equipment and other items. On the production side, the pharmaceutical industry contributed to growth in the second quarter. On an annual basis, GDP grew 5.7% in Q2, moderating from 6.0% in the first quarter. GDP growth for the first half of 2026 was 6.0% year-on-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.