UPDATE 1-Danish current account, trade defy euro zone crisis

* Aug current account surplus at 14.3 bln DKK

* Trade surplus grows to 9.0 bln crowns

* Analysts say grounds for cautious optimism

* Private consumption, investments seen key to turnaround

(Adds background, quotes)

COPENHAGEN, Oct 9 (Reuters) - Denmark's current accountsurplus swelled to a near-record high and the trade surplus rosein August, signs its economy was holding up well in the face ofrecession across Europe.

Denmark is slowly recovering from its deepest economiccrisis since World War Two but remains the weakest-performingeconomy in the Nordic region, held back by sluggish privateconsumption after a property bubble burst.

Its current account surplus reached 14.3 billion crowns($2.5 billion) in August from a revised 13.1 billion crowns inJuly, the national statistics office said.

The seasonally adjusted trade surplus excluding shipsalso rose to 9.0 billion crowns in August from a revised 8.7billion in July.

"The overall picture is that exports still are close torecord levels and are still managing to grow," said ToreStramer, an analyst at Nykredit, calling the development apositive surprise.

"We had expected a slowdown in exports due to recession inthe eurozone."

Denmark's government has warned that financial turmoil inthe global economy would dampen economic growth in the Nordiccountry. It expects growth of 0.9 percent this year before a 1.7percent expansion in 2013.

"Today's figures are grounds for cautious optimism," saidSteen Bocian, chief economist at Danske Bank.

Analysts said that part of the reason for the strong currentaccount surplus in August was because Danish consumers andbusinesses remained wary about spending and investments.

"A turnaround in Denmark is going to come from progress inboth private consumption and investment at home," saidNykredit's Stramer.($1 = 5.7498 Danish crowns)

(Reporting by Mia Shanley; editing by Patrick Graham)

((copenhagen.newsroom@thomsonreuters.com)(+45 3396 9649))


Related Tags