Denmark: Industrial production defying gravity – Nordea

Jan Størup Nielsen, analyst at Nordea Markets, points out that during the first six months of the year, economic growth in Denmark significantly outpaced growth among country’s most important trading partners.

Key Quotes

“Danish economic growth in H1 2019 was 2.3%, while growth in for instance Germany was a meagre 0.6% during the same period.”

“In addition to solid domestic demand the Danish economy has also been supported by a marked increase in industrial production in recent years, which has resulted in a major growth contribution from Danish net exports. The increase in Danish industrial production is especially noteworthy as the trend in Denmark has contrasted sharply to that in Germany since the beginning of 2018.”

“Over that period industrial production in Denmark has grown by nearly 10%, while industrial production in Germany has declined by just over 6%. Seen over a longer period, Danish industrial production has increased by more than 40% since 2010, while the increase in Germany over the same period has been less than half of that.”

“Compared with many other European countries the pick-up in Danish industrial production is also quite remarkable. During the past three months, Danish industrial production rose by just over 7% on the year-earlier period, which is the highest growth rate among all EU countries.”