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The pharmaceutical industry contributed to increasing exports in June

by AI | 09.Aug 2024 | Europe in brief AI

While total exports have increased, exports to other EU countries fell in June. Exports to the USA are increasing.

While total exports have increased, exports to other EU countries fell in June. Exports to the USA are pulling up. EFE/Martín Alipaz

Danish companies sent slightly more goods beyond the country’s borders in June compared to the previous month.

This is shown by figures from Statistics Denmark, which were released on Friday.

In June, total exports of goods and services increased by 1.8 percent to 163 billion kroner. Thus, exports have increased by 1.4 percent over the course of three months.

The increase is mainly due to more goods being sent from the pharmaceutical industry beyond Denmark’s borders, writes Statistics Denmark.

Allan Sørensen, who is chief economist at Dansk Industri, notes that exports to other EU countries have fallen, while it is exports to the USA that are increasing.

“The markets in the EU constitute the backbone of Danish exports, and therefore it leaves its mark when exports to nearby markets are struggling,” he writes in a comment.

However, he believes that growth in Europe will pick up in the coming period, which could send more orders to Danish companies.

This is due to a combination of falling inflation and rising purchasing power, while interest rates are pointing down.

According to Allan Sørensen, Danish companies have increased exports to the USA by 17 percent over the first six months of the year compared to the first half of 2023.

“Companies are getting many new export orders in the American market. However, progress in the USA may be challenged. There is an increasing fear of a slowdown in growth in the USA,” he writes.

Jeppe Juul Borre, who is chief economist at Arbejdernes Landsbank, also notes that several of Denmark’s close trading partners are experiencing a slowdown in growth. This includes Germany.

“However, it has not managed to put a significant spoke in the wheel for Danish exports. Danish exports are generally less sensitive to economic cycles, with a strong focus on, among other things, medicine,” he writes in a comment.

While exports increased in June, imports fell. Thus, the surplus on the current account balance stood at 28 billion kroner, which is 4.7 billion higher than in May.

The current account balance is the surplus or deficit in Denmark’s trade with the outside world.