Denmark’s economy contracted by 3.3% in 2020, the largest drop since the Global Financial Crisis, according to data published by Statistics Denmark on Friday.
The Danish economy fared better overall than expected by the government and the central bank, which had predicted contractions of 3.8% and 3.6% in their latest estimates.
“We got away cheaper than expected,” Sydbank’s chief economist Soren Kristensen said in a note. “As expected, consumers pulled a big load, but the engine did not run on just one cylinder. Investments also pulled in the right direction.”
The contraction, which is a preliminary estimate, is the largest since 2009, when the Danish economy shrank 4.9%.
In the fourth quarter, Denmark’s gross domestic product rose 0.6%.