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