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Denmark, Finland risk recession in case of Brexit - Danske Bank

COPENHAGEN (Reuters) - A British exit from the European Union may trigger a recession in Denmark and Finland later this year and would shave up to one percentage point off economic growth in the Nordic region in 2017, Danske Bank said on Wednesday.

“Our best estimate is that growth would suffer already in the second half of 2016, when Denmark and Finland could tip into recession,” the bank’s economists said in a research note.

Looking across the Nordic region, economic growth could slow by between 0.5 and 1 percentage points next year if the British decide to leave the EU in Thursday’s vote.

“Denmark would suffer from its close integration with the European economy, Sweden and Finland from their reliance on exports of investment goods and Norway from a likely drop in the oil price,” Danske Bank said.

Reporting by Jacob Gronholt-Pedersen, editing by Terje Solsvik

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