The latest figures from Statistics Denmark show GDP growth in Denmark to have been in negative territory – the third minus in the past four quarters.

Only a brief respite in Q1, 2012 at plus 0.3 per cent has prevented Denmark from technically sinking into recession, which occurs when growth is negative for two quarters in a row.

The recently published government budget proposal forecasts a year-on-year growth for 2012 at 0.9 per cent and 1.7 per cent for 2013.

The Q2 figures reflect a drop in domestic demand of 1.6 per cent as a result of a drop in private consumption and investments, and a marginal growth in public expenditure.

Statistics Denmark says that sales of cars and other means of transport have declined by 1.8 per cent and services by 1.9 per cent. Investment growth in Q2 has been confined to the construction and works sector.

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