Danish private consumption fell by 0.5% q/q in Q2 and import was down by 3.4%. Therefore, despite the ongoing expansion in production, domestic demand came in fairly weak in Q2. Export dropped by 2.2%. On the positive side gross capital spending was up by 0.8%, lifted by a solid increase in machinery investments. In Q2 inventories made a positive growth contribution of 0.2 %-points.

The Danish economy is expected to continue on a higher growth path over the coming years. Therefore the observed weakness in domestic demand in Q2 is expected only to be temporary. This expected expansion will mainly be fuelled by higher private consumption due to higher disposable income, low interest rate level and higher house prices. At the same time also export is expected to increase, helped by higher global growth and a weaker trade-weighted Danish krone. In total, Danish GDP is likely to increase by around 1.5% in 2015 and up to around 2.0% in 2016, estimates Nordea Bank.