Key indicators: Exports increased in third quarter
Despite the global upswing, Danish businesses have had difficulty increasing exports. In the third quarter progress was finally made, and that is excellent news, says DI.
Although goods exports fell by 0.1% in September, there was an increase of 1.1% in the third quarter overall, while service exports increased by 2.4% in the third quarter, shows new data from Statistics Denmark.
“Exports moved in the right direction in the third quarter. It is excellent news that the global upswing resulted in more orders for Danish businesses in the third quarter, because exports have not been particularly impressive over the past year. Balanced growth in the Danish economy requires that we get our exports going,” says Senior Analyst Allan Sørensen, the Confederation of Danish Industry.
Over the first three quarters of the year, goods exports increased by just 0.2% compared to the same period last year. In the same period, service exports fell by 1.3%.
“Even though the global economy has been thriving in recent years, we have had difficulty translating this into increased exports. Growth in the global economy has peaked this time around, and prospects of weakened growth will increase competition in export markets,” says Senior Analyst Allan Sørensen, DI.
“The global upswing should be strong enough to ensure increased exports, but prospects are marked by great uncertainty. A deal has not yet been reached in Brexit negotiations, the US continues to practice a highly protectionist trade policy, and the strong Danish krone puts pressure on export companies and makes it difficult to translate the global upswing into increased exports,” says Senior Analyst Allan Sørensen, DI.
More than 800,000 Danish jobs depend on exports. Danish businesses export nearly DKK 1.2 trillion worth of goods and services per year, making it the biggest source of income in the Danish economy.
“Exports are crucial for growth and employment in Denmark. We have some major export engines that are responsible for over half of total exports, but a large number of businesses serve as subsuppliers for these export companies, meaning that they also export, indirectly,” says Senior Analyst Allan Sørensen, DI.