COPENHAGEN (dpa-AFX) - The Danish economy contracted for the first time in more than two years in the first quarter of 2025, mainly due to a decline in the pharmaceutical industry, preliminary data from Statistics Denmark showed on Tuesday.
Gross domestic product decreased 0.5 percent sequentially in the first quarter, reversing a 1.6 percent expansion in the fourth quarter. Moreover, this was the first decrease since the fourth quarter of 2022.
The gross value added in the pharmaceutical industry alone fell by 17.3 percent. Excluding the pharmaceutical industry, the overall economy grew by 1.0 percent.
The expenditure breakdown showed that gross fixed capital formation, or investments, declined 6.3 percent compared to the previous quarter, and exports showed a decline of 3.0 percent amid the large decline in pharmaceutical industry production. Meanwhile, household consumption increased slightly by 0.2 percent.
Compared to the same period of 2024, Denmark's economy showed an expansion of 3.6 percent in the March quarter.
Separate official data showed that consumer confidence weakened for the fourth consecutive month to 18.4 in May from -17.0 in April. The decline was primarily due to a significant fall in consumers' assessment of Denmark's current economic situation.
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