Danish economy recovering slowly – CB

Thursday, 22 March 2012 00:00 - - {{hitsCtrl.values.hits}}

COPENHAGEN (Reuters): Denmark’s central bank on Wednesday said the Danish economy was recovering slowly and would see growth exceed that of the euro zone this year.

The Nationalbank raised its forecast for gross domestic product (GDP) growth this year to 1.2% from a previous forecast of 1.1% and kept steady its forecast for 2013 GDP growth of 1.6%.

Introducing a 2014 forecast, the central bank said the country’s GDP would see growth then of 1.7% and that unemployment would start to fall.

“There are signs that the Danish economy is improving again little by little, although the property market remains weak,” central bank Governor Nils Bernstein said in a statement with the bank’s new quarterly review of monetary conditions and the economy.

“At the same time, there is significant potential for households and companies to increase consumption and investments following several years with a high level of savings.”

“The Nationalbank’s new forecast for the Danish economy is 1.2% growth this year. That is stronger than the euro zone,” Bernstein said.

European Central Bank staff forecasts earlier this month showed the euro zone economy could shrink by 0.5% this year and at best grow by a meagre 0.3%.

The Danish central bank’s new growth forecasts for 2012 and 2013 are higher than the finance ministry’s most recent forecasts, from December, for GDP growth of 1.0% this year and 1.4% in 2013. Denmark was the weakest-performing Nordic economy last year.