20.08.202606:20:15UTC+00Danish GDP Growth Softest in Over a Year

The Danish economy expanded by 0.3% quarter-on-quarter in Q2 2026, slowing notably from the 1.5% increase recorded in the previous quarter, according to preliminary estimates. This was the weakest quarterly performance since the contraction in Q1 2025.

Household consumption declined by 0.3%, following a 0.5% drop in Q1, as vehicle purchases fell 2.2%, though this was a much smaller decrease than the 12.4% fall seen previously. Public consumption also edged down, slipping 0.1% after a sharper 4.4% decline in the prior quarter.

In the external sector, exports rose 0.9%, easing from a 2.2% increase in Q1, while imports grew at a faster pace of 1.1%, rebounding from a 0.8% contraction.

Gross fixed capital formation increased by 0.8%, recovering from a 5.1% fall in the previous period. This improvement was supported by a 9.5% rise in other construction and engineering, compared with a 9.7% drop earlier, and by strong growth in capital investment overall. These gains were partly offset by an 8.4% decrease in investment in transport equipment.

On the production side, the pharmaceutical industry contributed only modestly to growth, after having accounted for a large share of the expansion in the first quarter.

On an annual basis, GDP grew 4.6% in Q2 2026, down from 5.9% in Q1. For the first half of 2026 as a whole, economic growth came in at 5.3%.