Denmark GDP Contracts In Q1

(RTTNews) - Denmark's economy contracted for the first time in six quarters in the three months ended March, though marginally, due to a decline in services, figures from Statistics Denmark showed on Tuesday.

Gross domestic product dropped a seasonally adjusted 0.1 percent sequentially in the first quarter, in contrast to a 3.0 percent expansion in the previous quarter.

Moreover, this was the first fall in GDP since the third quarter of 2020.

The latest contraction was mainly due to a decline in service industries targeting households affected by COVID-19 restrictions in January, the report said.

Among expenditure components, household consumption continued to decline in the first quarter, by 1.2 percent, which was widely distributed across goods and services.

Both exports and imports fell by 2.1 percent and 1.1 percent, respectively compared to the previous quarter.

On the other hand, gross fixed capital formation registered an increase of 2.6 percent, underpinned by more investments in housing, civil engineering and other construction segments.

On a yearly basis, gross domestic product advanced 6.7 percent in the first quarter.

The agency remarked that the calculation of the national accounts is more uncertain than usual due to the special circumstances surrounding the COVID-19 pandemic.