According to figures released by the UK Office for National Statistics recently, growth in the UK had slowed to 0.2 percent in Q4 and during the whole of 2018, it only grew by 1.4 percent.
A so-called ‘Hard Brexit’ is seeming more and more likely and that is causing worry in several quarters about future prospects for Danish exports.
Jobs at stake
The confederation of Danish industry, Dansk Industri (DI), estimates that more than 60,000 jobs are tied to exports to the UK.
“The UK economy is gradually slowing down and growth is at the lowest rate since the financial crisis, said DI’s chief analyst Allan Sørensen.
The UK has also reduced investments – in Q4 these fell by 1.5 percent and are now 3.7 percent under the level seen a year previously.
“UK businesses have now reduced investment four quarters in a row. Brexit is creating uncertainty and the prospect of lower growth, and that is causing companies to hold back when it comes to making new investments,” added Sørensen.
A lack of confidence
During 2018 the UK economy has been driven by private consumption but over the last few months consumer confidence has sunk to its lowest level for more than five years, and this could result in slowing growth.
“The UK is an extremely important market for Danish companies, so it will be very significant for Danish export if there were to be tariffs and new product regulations in the UK market,” said Sørensen.
Last year the UK bought goods and services to the tune of over 85 billion kroner and the UK is Denmark’s fourth-largest export market.