There is a direct impact via trade, as well as an indirect impact via expectations for the future. Economic activity in Denmark has stagnated over the last 18 months. The reason is that consumers and firms still keep a tight rein on spending. The consumption ratio is low and the investment ratio even lower, while the savings surplus is unusually high.
This should be viewed against the backdrop of considerable loss of wealth in the wake of the financial crisis, which has by no means been restored. Add to this a subdued trend in disposable income and, not least, low consumer and investor confidence. The high household savings entail a large consumption potential, which can be unleashed when confidence returns.