2010.08.3006:58:00UTC+00Denmark GDP Grows 1% On Exports, Investment

The Danish economy grew at a faster pace between April and June compared to the previous three months as exports picked up and investment rebounded, official data showed on Monday.

Statistics Denmark said gross domestic product increased 1%, faster than the upwardly revised 0.7% growth in the March quarter. Growth in the first quarter was revised up from the 0.5% increase estimated earlier.

Exports and investment were the main drivers of growth. Exports increased 3.5%, sharply faster than the 0.9% growth in the first three months of the year.

Investment rose 3.2% in the June quarter, reversing the 3.9% fall in the March quarter. Investment in machinery & transport equipment surged 9.9%, while that in construction excluding housing rose 4.7%.

At the same time, private consumption fell 0.3%, while government consumption rose 0.8%. A 1.5% decline in services consumption dragged down consumer spending.

On a yearly basis, the Danish economy expanded 2.8%. In the first six months of the year combined, the economy grew 1.3%.

Last week, the Danish government said it intends to borrow more than previously estimated in financial markets this year and the next to fund its budget deficit. The country expects to borrow DKK 113 billion this year and DKK 142 billion in the next, compared to a May forecast for a DKK 107 billion borrowing need in 2010.

The government expects a budget deficit of 4.6% of GDP this year, which it then expects to fall to 4.4% next year.

Copyright(c) 2010 News.com, Inc. All Rights Reserved