Denmark: Economic growth rises in the first quarter of 2026
GDP reading: Denmark’s GDP increased 1.9% on a seasonally adjusted quarter-on-quarter basis in Q1, following a 0.5% expansion in the previous quarter. The economy’s performance was flattered by the pharma sector; excluding pharma, the remaining part of the economy grew by only 0.2% in quarter-on-quarter terms.
In annual terms, the economy increased 5.9% in Q1, following a 3.1% expansion in the prior quarter.
Drivers: Compared with the prior period’s data, readings in Q1 improved for private consumption (+1.2% on a seasonally adjusted quarter-on-quarter basis vs +0.6% in Q4), exports of goods and services (+3.8% vs -0.3% in Q4) and imports of goods and services (+0.3% vs -0.7% in Q4). In contrast, readings worsened for government consumption (-3.8% vs +5.1% in Q4) and fixed investment (-3.5% vs +1.2% in Q4).
Panelist insight: On their GDP growth outlook, EIU analysts said:
“The main risks to our growth outlook stem from a weaker external trade environment, greater international trade uncertainty and higher global commodity prices as the conflict in the Middle East remains elevated. The spike in global oil prices is likely to affect Denmark through higher inflation, lower growth and a narrower budget surplus than our previous forecasts for both 2026 and 2027.”