Denmark Raises Growth Forecast, Sees Signs of Recovery

The Danish government doubled its growth forecast for this year to 0.4 percent from 0.2 percent on Thursday, saying the economy was showing signs of recovery.

"The Danish economy is showing signs of recovery. It's not happening quickly, but it's moving forward," the Ministry of Economic Affairs said in a statement.

The new estimate is higher than the 0.2 projection announced in August, but is still sharply lower than an initial forecast of 1.7 percent growth at the beginning of the year.

"This year, GDP growth has mainly been driven by private investment," it said.

Despite rising consumer sentiment, private consumption was continuing to "evolve at a subdued rate," it added.

The labor-led government's growth expectations for next year, when it believes Danish exports will take off, were kept unchanged at 1.6 percent.

Denmark's economy has been plagued by low consumer spending after the country's housing bubble burst in 2008, leaving it with the world's highest level of household debt per capita.