Denmark posts solid economic growth; might avoid recession

COPENHAGEN, Feb 28 (Reuters) - Denmark posted solid economic growth of 3.6% last year despite a fall in private consumption, helped by record-high employment and strong pharmaceutical exports, the country's statistics office said on Tuesday. The economy in the Nordic country of nearly 6 million people grew 0.9% in the last three months of the year, even as high inflation and rising interest rates brought other European economies close to recession. High savings among Danes have helped prevent a larger slump in private consumption, which makes up nearly half of the country's economy.

Private consumption fell 2.6% last year, while inflation fell for the third straight month in January to 8.4%, data showed.

Aided by generous economic support schemes during the coronavirus pandemic, the country's labour market has remained tight with employment growing 3.9% last year, the statistics office said. Denmark's economy was boosted by the pharmaceutical industry, where diabetes and obesity drugmaker Novo Nordisk is a major exporter and employer.

Recent upbeat economic data have prompted some economists to revise expectations of a recession in Denmark. "The risk of a European recession has fallen considerably, which will also support the Danish economy," chief economist at Nykredit, Palle Sorensen, said in a note. "We probably won't be far into the future either before wages overtake inflation again," Sorensen said. (Reporting by Jacob Gronholt-Pedersen Editing by Christina Fincher)