Multi-billion kroner boost in surplus could signal slow recovery
Figures strengthen the currency but indicate an absence of investment
Denmark’s balance of payments shows a surplus of 13.3 billion kroner in May, 4.4 billion kroner up on April but more or less unchanged compared to May 2013, according to figures from the national statistics office, Danmarks Statistik.
The increased surplus is particularly due to an increase in exports in the period.
Investing too little?
Børsen business newspaper reports that the surplus will contribute to strengthening the krone and keeping interest rates down.
However, according to commentators, the increase in surplus – the difference between how much the country saves and how much it invests – is not necessarily a completely positive thing.
Mikkel Høegh, the chief economist at the think-tank Europa, told Børsen that it could be a sign that we are investing too little. “It’s thought-provoking at a time when there’s a need to invest in order for the economy to completely come out of the crisis,” he said.
“All in all, it would be good for the Danish economy if looking forward the surplus were to fall a bit. That would both be a sign that consumers are willing to spend some money and an increasing willingness to invest.”