·
Gross domestic product in Denmark rose a negligible 0.04% in the third
quarter. Private consumption rose almost 1% but public consumption
fell by 0.6%. Gross fixed capital spending rose 3.6% and a swing in
inventory change from a liquidation of 1,051 million 1995 Krone to
an accumulation of 3,003 million also added a good boost to output. But the foreign trade sector offset almost all the gains on
the domestic sector. The impact of net exports in the total
gross national product is illustrated in the first chart.
· Although Denmark is not in the Euro zone, its currency, the
krone has moved with the euro against the dollar as can be seen in
the second chart. Part of the decline of 1,7% in the exports of
goods and services from the second to the third quarter was due to the
rising krone. At the same time, the rising krone stimulated
imports of goods and service, which rose by 3.4%. However, rising
prices of oil also contributed to the rise in imports. The
combination of lower exports and higher imports led to a decline of 7,303
million 1995 krone in the balance of trade in goods and services
from 10,224 million 1995 Krone in the second quarter to 2,921 million in
the third quarter.