April 4, 2013 / 8:06 AM / 4 years ago

UPDATE 1-Danish economy shrinks less than estimated

* Q4 GDP revised to -0.7 pct Q/Q from previously -0.9 pct

* Q4 GDP revised to -0.6 pct from -1.0 pct

COPENHAGEN, April 4 (Reuters) - Denmark’s economy shrank less than initially estimated in the final quarter of 2012, raising propects it was heading towards recovery after years of weak private spending.

The country’s gross domestic product (GDP) contracted 0.7 percent in the fourth quarter from the third, revised data from the national statistics office showed on Thursday. Its preliminary reading was a 0.9 percent decline.

Year-on-year, GDP shrank 0.6 percent in the fourth quarter, revised from a 1.0 percent fall.

Denmark has struggled to recover over the past few years after a property bubble burst following the 2008-2009 financial crisis, denting private consumption and hurting business confidence.

Thursday’s data showed personal consumption rose 0.1 percent year-on-year in the fourth quarter, better than a previously flat reading.

Danish Chamber of Commer economist Bo Sandberg said the data showed growth was still weak, but added: “It is, however, pleasing that it is the private sector which drives today’s revision of the GDP development.”

Denmark has fared worse than its Nordic neighbours Sweden and Norway during the crisis and is still trailing behind them in terms of growth.

Last month, the Danish government lowered growth expectations for the domestic economy in 2013 to 0.5-1.0 percent from a previous forecast of 1.2 percent as a result of weak demand from the euro zone. The central bank has also cut its outlook for this year.

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