(Bloomberg) -- Denmark’s economy extended gains in the third quarter as drugmakers continued to grow their output while domestic demand also started to pick up.
Gross domestic product rose 1.2% from the previous three months, Statistics Denmark said on Wednesday in a preliminary reading. The pharmaceutical industry was “the main driving force” of the expansion, though private consumption and investments also contributed, the agency said.
It is the second consecutive quarter of growth in Denmark, following a contraction earlier in the year.
Denmark’s flourishing drugmaking industry, mostly known for Novo Nordisk A/S’s popular weight-loss drugs and Bavarian Nordic A/S’s mpox vaccine, is an important output driver in the Nordic country. It was responsible for half of the economy’s expansion last year when Denmark was one of the fastest growing in western Europe.
“The pharmaceutical sector is generating explosive growth in Denmark,” Mathias Dollerup Sproegel, chief economist at Sydbank, said in a note, while highlighting contribution from consumers and investments. “This is interesting, as consumers have been careful with their money for a long time.”
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