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Economic forecast

Danish economy has come to a complete stand still during 2012. Consumers and investors are very reluctant to consume and invest and the decline in Southern Europe manifests itself very clearly in export figures.

It is likely that we need to be well into 2013 before there are any prospects of recovery. There is very little prospect of satisfactory Danish growth until European growth increases again.

Negative growth

The Danish economy disappointed with negative growth in the second quarter of 2012 and despite a large increase in exports of goods in August, indicators point also to negative growth in the third quarter. Thus, Danish economy seems to be experiencing a new recession.

Expectations for 2012 and 2013 have been revised significantly downwards in comparison with DI’s economic forecast issued in May 2012. Currently, a slightly negative growth in 2012 and a small increase in GDP of 0.8 per cent in 2013 are expected.

Growth back the next couple of years

During the course of 2013 and 2014 an increase in growth is expected when the growth in world economy is expected to return to a more normal level.

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By Chief Economist Klaus Rasmussen