Denmark came out of recession
The first quarter featured a pleasant novelty, as it turned out that Denmark escaped the technical recession. After a decline in the two previous quarters grew gross domestic product by 0.3% in the first quarter of 2012.
The increase was mainly due to growth in both the private and public consumption. Furthermore drew increases in investments – including inventories –the economy up. On the negative side grew exports by only 0.3% over the quarter, while imports in exchange soared by 2%. Finally, note that employment fell in the first quarter by 0.3% or the same as in the fourth quarter last year.
Not strong figures
Although Denmark thus escaped the recession, these are not particularly strong numbers. It is worrying that exports, which so far has been the driving force in the economy, now seems to go tough times ahead in light of the weak development in Europe. Furthermore, it is especially investments in new aircraft, which draws business investments up and investments in new homes continues to fall.
Continued need for vitamin supplements
Overall the figures suggest that the Danish economy will continue to need vitamin injections in the form of an expansionary monetary and fiscal policy. The labor market is yet to come up to speed, and a self-sustaining recovery is still far in the horizon.