Danish GDP fell two percent in the fourth quarter of 2008 according to the latest statistics from Statistics Denmark, in particular as a result of a drop in private consumption.
Imports and exports also fell, dragging GDP for all of 2008 down by 1.3 percent.
Denmark is not the only loser. According to the new statistics the overall GDP for the European Union fell by 1.5 percent while GDP in the United States fell by one percent.
Car sales are generally a good indicator of whether people are hanging on to their money; In the fourth quarter of 2008 car sales dropped no less than 23.8 percent. Other goods dropped 1.1 percent.
The new figures come the day after new unemployment figures showed an increase for the fourth month in a row. January jobless figures showed an increase of 5,000 with unemployment now at 2.3 percent.