Denmark's economy expands faster than estimated in second quarter

Denmark’s economy grew faster than expected in the second quarter, helped by higher spending in restaurants and hotels after the end of Covid-19 restrictions.
 

Gross domestic product expanded 0.9% from the first three months of the year, Statistics Denmark said on Wednesday. That compares with a preliminary reading of 0.7% growth published two weeks ago.
 

“We’re seeing dark clouds on the horizon” but the strong second-quarter performance gives “hope for a fairly soft landing for the Danish economy,” Mathias Dollerup Sproegel, a senior economist at Sydbank, said in a note.
 

Denmark’s economy has been outperforming peers in recent quarters, helped by high employment. Still, there are signs that the strength of the labor market could be waning, Sproegel said.
 

Statistics Denmark said on Wednesday that the unemployment rate rose to 2.7% in July from 2.6% the month before. According to Las Olsen, an economist at Danske Bank, the rise is partly due to Ukrainian refugees who are now considered eligible to join the labor market but still aren’t employed.  
 

Later on Wednesday, the finance ministry is due to present the government’s budget proposal for 2023 as well as new economic forecasts.
 

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