Political Economy


Denmark's balance of payment surplus was up in June

Friday, 09 August 2013
There were reported surpluses on the Danish balance of payments in June, which rose further in June.

This means that Denmark performed better with its operations with foreign countries in June than in the previous month. The current account surplus rose in June with one billion Danish kroner to Dkr13.3 billion compared to May, according to latest official data from Statistics Denmark on Friday.Danish Kroner

Compared to June 2012, it was a decrease of about one billion Danish Kroner, the calculation shows.

Thus, profits from Danish trade abroad is in excellent form. But it is not enough to throw arms in the air, according to the comment mad after the assesses by chief analyst at Nykredit, Tore Stramer.

He writes in an analysis of today's statement that the surplus on the balance of payments has a "bleak background," as it essentially can be linked to a weak trend in imports.

"The surplus on the balance of payments is thus not an expression of a good competitiveness of Danish companies" he writes.

Tore Stramer also believes that the balance of payments has been given a further boost by the fact that assets and earnings had risen significantly in recent years.

This, he writes, is driven partly by the fact that Danish companies are increasingly providing investment abroad rather than at home in Denmark.

"That said, there is no doubt that the continuing large current account surpluses gives Danish economy a good reputation in the wider world," writes Tore Stramer.

"It has, among other secured Danish economy a status as a safe haven, and thus the very low interest rates, which many now enjoy," he continues.

However, today's figures help to paint a brighter picture of the economic horizon for Denmark, he thinks.

"It is obviously good news, along with improvement in retail sales, consumer confidence and business confidence which gives a clear hint that the activity in the Danish economy is going up in gear," he writes.
by Scancomark.com Team

What do you think about this article? Suggest correction or join our network!

Print Friendly and PDF