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Danish economy takes off while Sweden lags

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(Globalpost/GlobalPost)

Danish quarterly economic growth exceeded that of Sweden for the second quarter in a row, according to official statistics released Friday.

In the third quarter of 2013, Denmark's GDP increased by 0.4 percent whereas the Swedish economy grew only by 0.1 percent.

"A new Nordic tiger has been born ... Expect it to continue," Nordea economist Jan Stoerup Nielsen said on Twitter.

It was the first time since early 2011 that Denmarks's economy grew for two consecutive quarters.

Danish growth exceeded the expectations of analysts surveyed by Dow Jones Newswires, who had forecast a 0.3 percent rise, but Sweden fell short of a 0.2 percent growth forecast.

In the second quarter, Denmark's economy grew by 0.6 percent and Sweden's shrank by 0.1 percent.

Statistics Denmark said the country's growth benefitted from rising investments (+3.9 percent) and growing exports (0.9 percent).

In Sweden, where 33 percent of GDP is dependent on exports, investment was down 1.6 percent compared to a year earlier, according to Statistics Sweden.

But Swedish economists said the details of the report were more encouraging than the headline figure.

"Aspects of the GDP indicate a healthy evolution of the internal economy," Nordea economist Annika Winsth wrote on Twitter.

Swedish household consumption grew by 2.1 percent compared to last year, after a 2.0 percent increase in the second quarter.

Both countries boasted of improving unemployment rates in October: 7.9 percent in Sweden and a stable 5.7 percent in Denmark.

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http://www.globalpost.com/dispatch/news/afp/131129/danish-economy-takes-while-sweden-lags