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Danish economy better than expected, minister says
October 2, 2013 / 6:10 PM / 4 years ago

Danish economy better than expected, minister says

COPENHAGEN (Reuters) - The Danish economy is picking up more speed than expected, albeit from a low level, and the government will not add fresh stimulus, Minister for Economic and Interior Affairs Margrethe Vestager told Reuters.

Danish Economy Minister Margrethe Vestager, whose country currently holds the rotating Presidency of EU, holds a news conference at the end of an EU finance ministers meeting in Brussels February 21, 2012. REUTERS/Sebastien Pirlet

The influential cabinet member, who is also head of the Danish Social Liberal Party in a three-party coalition, told the Reuters Nordic Investment Summit it would be important to limit deficit spending when negotiating the 2014 budget later this autumn.

The national statistics office this week revised second-quarter gross domestic product growth to 0.6 percent year-on-year from an original reading of 0.4 percent.

“The new figure ... showed that there is solid foundation for optimism and that the growth in the Danish economy now will go better than we expected in August,” Vestager said.

“For the whole year of 2013 we expected growth of 0.2 percent compared to last year. I now think it can go slowly better in the second half of this year and continue to do so in 2014.”

The Danish economy was hit hard by the financial crisis, and banks took large losses when the property market crumbled, with several smaller financial institutions going bankrupt.

The central bank has forecast a fiscal deficit for the euro outsider of 2.0 percent of GDP for next year, just below the European Union’s 3 percent ceiling.

“The government has already gone as far as we can in stimulating the private sector,” Vestager said. “We can’t go any further if we want to keep the confidence of the financial market and by that keep the interest rate level low.”

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(For other news from Reuters Nordic Investment Summit, click here)

Writing by Terje Solsvik; Editing by Ruth Pitchford

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