Danes hope for knock-on effect from rising German consumer spending

Danish economists are hoping that Germany's biggest rise in private consumption since 2011 could help speed the pace of Denmark's own recovery. "It is very pleasing to see that the boom in Germany is primarily being caused by internal consumption, as it is our biggest export partner," said Lisette Rosenbeck, an economist with Nykredit, a major lender in Denmark, on Friday. German gross domestic product grew 0.8 percent in the first quarter of 2014, primarily driven by an increase in domestic demand, which rose 1.9 percent. That is good news for Denmark, since Germany takes about 20 percent of Danish exports, and shifts in its economy generally have a direct affect on businesses across its northern border. Nykredit expects German growth to remain strong in 2014, finishing at an annual rate of 2.3 percent. Rosenbeck's comments came in connection with the release of a Nykredit report finding that while the Danish economy is rebounding from the recession, it is advancing slowly. Last year, the average German household saw its income rise 1.5 percent over inflation and it is this increase, along with falling unemployment, that is driving the rise in consumer spending.