(Bloomberg) — Denmark’s central bank slashed its outlook for the Nordic nation’s economy and now sees a contraction next year as spending is dented by rising inflation and borrowing costs.
Nationalbanken expects gross domestic product to shrink 0.1% in 2023, it said on Wednesday. It sees a rebound of 1.2% the following year. That compares with the bank’s previous forecast of 2.1% growth in the next two years.
The central bank is among the first forecasters to predict an outright contraction in the Danish economy that was among the best in the rich world in weathering the effects of the pandemic thanks to its strong labor market. Svenska Handelsbanken earlier on Wednesday forecast a 0.7%-decline for next year, while Nordea this month estimated the economy to grow 0.5% in 2023 and finance ministry sees 0.8%-expansion.
Rising interest rates and higher inflation will result in “considerably” lower growth in the coming years, the bank said. Governor Lars Rohde called on the Danish government to tighten fiscal policy in its 2023 budget plan and to reduce demand as quickly as possible to avoid a “self-reinforcing wage-price spiral.”
“We might as well prepare for a period of weakened activity and declining employment,” Rohde said in a statement. “It is important to curb the very high inflation. This requires significant economic policy tightening, regrettably something that everyone will feel -– citizens and companies alike.”
As energy and food prices have jump globally, Denmark’s consumer prices rose 8.9% in August, the highest annual inflation rate in four decades. Consumer confidence has in recent months been at the lowest level since the 1970s.
Denmark, which ties the krone to the euro, earlier this month raised interest rates, tracking the European Central Bank, to end its era of negative interest that lasted almost a decade. Rohde, the governor, also this month said he will retire early next year.
Nationalbanken’s September Forecasts
Note: Numbers in parenthesis are previous forecasts from March.
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TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
