FX.co ★ Danish Q2 GDP Growth Revised Lower

In the second quarter of 2025, Denmark's economy experienced a 1% growth from the previous quarter, which is a 0.3 percentage point decrease from the initial estimate. This growth marks a recovery from the 1.3% contraction recorded in the prior quarter. Key contributors to this economic expansion included robust performances in the pharmaceutical sector, public production, and business services. Additionally, net external demand played a significant role, with exports increasing by 3.7% as opposed to a 4.5% decline in the first quarter, and imports rising by 3.4% compared to a 6.1% drop previously. Government expenditure rebounded with a 0.4% increase following a 1.9% decline, while fixed investments grew by 0.9% after a significant 9.1% decrease. This was bolstered by a rise in investments in construction and engineering by 3.1% compared to a 0.5% fall, and in machinery and transport equipment by 4.2%, following an 8.7% decline. Conversely, household spending decelerated, showing a modest 0.2% rise from 0.8%. On a year-over-year basis, the GDP grew by 1.6% in Q2, which represents the slowest growth since Q1 2024, down from a revised 2.4% increase in the previous quarter.