Cruel summer for Danish economy

A weak employment sector and stagnant economic output has bred scepticism, but there is improvement in some areas

Danske Bank’s chief economist, Steen Bocian, has warned that despite a promising initial financial quarter, the national recession is not out of the woods just yet. An analysis of the first half of 2012 reveals that the economy is still ailing and that Danes have reacted accordingly.

“The key economic figures have produced positive and negative surprises, but unfortunately more of the latter,” Bocian wrote in his analysis.

It all seemed to be going in the right direction just months ago in June when first quarter figures of 2012 indicated a 0.3 percent increase in Gross Domestic Product (GDP) from the corresponding quarter of 2011. But it was not enough, according to Bocian, who said that GDP increases of over two percent annually would mark a significant improvement.

“The underlying growth in export and consumer spending was low or negative,” Bocian wrote, according to Børsen newspaper. “The small GDP increase is most likely due to increased warehouse investments, which explains why the improvement failed to positively affect overall growth.”

The first half of 2012 also yielded a sluggish employment sector. Some 3,000 people lost their jobs in the first three months of the year and a rise in redundancies over the last three months, combined with a steady low number of online job advertisements, indicate a dire future.

While before the financial crisis, some 32,000 new jobs could be found on the net on a good month,  July 2012 showed only 15,100 job advertisements, just a couple thousand more than when the labour market was at its worst in 2009/10.

And these developments have had a clear effect on the public. Consumers have sensed the fragile financial environment and have been saving their money instead of spending it. They have even preferred to save rather than pay their debts, and have increased their bank holdings by 27 billion kroner since March.

But fortunately there are bright spots as well. Thanks to Denmark’s solid balance of payments, the month of June produced record profits of 15.3 billion kroner.

“The balance of payment profits is a result of household and public debts being financed domestically,” Bocian wrote. “Because of this, the Danish economy is more balanced and investors have faith in it, regardless of its pitfalls.”

A drop in bankruptcies and a rise in exports, partly due to a struggling euro, also help contribute to a hopeful outlook for the Danish economy.

TOP STORIES

  • Denmark too slow to ease recruitment rules for non-EU service workers, say industry associations

    Denmark too slow to ease recruitment rules for non-EU service workers, say industry associations

    When the Danish government in January presented the first of its schemes to make it easier to recruit foreign labour from outside the EU, it was hailed by the healthcare and service sectors as a timely and important policy shift. But while healthcare changes have been forthcoming, the service sector is still struggling, say the directors of the industry association Dansk Industri and one of the country’s largest private employers ISS.

  • Jacob Mark had it all coming in rising SF party – now he quits

    Jacob Mark had it all coming in rising SF party – now he quits

    SF became Denmark’s largest party in the EP elections in June. In polls, the left-wing party is breathing down Socialdemokratiet’s neck. It is a tremendous place to be next in line in Danish politics. But today, 33-year-old Jacob Mark announced he is quitting politics at the threshold of the door of power.

  • EU leaders toughen stance on return of irregular migrants

    EU leaders toughen stance on return of irregular migrants

    EU leaders agreed last week to speed up returns of migrants irregularly entering the bloc. Danish Prime Minister Mette Frederiksen is pleased, describing Denmark’s previous attempts to pitch a stricter asylum and migration policy to the EU as “like shouting into an empty handball hall in Jutland”. But not all leaders are enthusiastic.

  • Municipalities are investing taxpayer money in fossil fuels and weapons

    Municipalities are investing taxpayer money in fossil fuels and weapons

    A new database compiled by Danwatch and Gravercentret reveals that Denmark’s municipalities and regions have invested a total of DKK 414 million of taxpayer money in problematic securities including weapons companies and fossil fuel giants like TotalEnergies, Shell, Chevron and Aramco.

  • Expat Counselling offers mental health support for children in need of assessment and diagnosis

    Expat Counselling offers mental health support for children in need of assessment and diagnosis

    Waiting lists are long in Denmark for children and young people to be assessed for a learning support needs diagnosis. It can be of great importance to a child’s education and social well-being. An expat counselor offers an assessment by a native English-speaking psychologist.

  • Danish Originals S4 E1: Carsten ‘Soulshock’ Schack

    Danish Originals S4 E1: Carsten ‘Soulshock’ Schack

    In this episode of the art and business podcast Danish Originals, Los Angeles-based Danish DJ and music producer Carsten ‘Soulshock’ Schack talks about his journey in hip hop, R&B, and Pop from Aalborg to New York to Los Angeles.

Connect club

Connect Club is your gateway to a vibrant programme of events and an international community in Denmark.

Sign up here

Career

  • Come and join us at Citizens Days!

    Come and join us at Citizens Days!

    On Friday 27 and Saturday 28 of September, The Copenhagen Post will be at International Citizen Days in Øksnehallen on Vesterbro, Copenhagen. Admission is free and thousands of internationals are expected to attend

  • Diversifying the Nordics: How a Nigerian economist became a beacon for inclusivity in Scandinavia

    Diversifying the Nordics: How a Nigerian economist became a beacon for inclusivity in Scandinavia

    Chisom Udeze, the founder of Diversify – a global organization that works at the intersection of inclusion, democracy, freedom, climate sustainability, justice, and belonging – shares how struggling to find a community in Norway motivated her to build a Nordic-wide professional network. We also hear from Dr. Poornima Luthra, Associate Professor at CBS, about how to address bias in the workplace.

  • Lolland Municipality launches support package for accompanying spouses

    Lolland Municipality launches support package for accompanying spouses

    Lolland Municipality, home to Denmark’s largest infrastructure project – the Fehmarnbelt tunnel connection to Germany – has launched a new jobseeker support package for the accompanying partners of international employees in the area. The job-to-partner package offers free tailored sessions on finding a job and starting a personal business.

Want to advertise your job with CPH Post?

Contact us

Jobs