Coronavirus temporarily lowers private consumption

Economic Memo – June 2020 – No. 7

Authors Hviid, Simon Juul; Bech, Stine Ludvig; Kuchler, Andreas; Andersen, Svend Greniman
Subject Current economic and monetary trends; Other economic analyses; Economic activity and employment
Type Economic Memo
Year 2020
Published 17 June 2020
The corona epidemic has reduced the consumption of Danish households, which will temporarily lower the consumption rate. For a prolonged period, Danish households have saved and are in general well equipped for a contraction of the Danish economy. Therefore, the consumption rate is expected to relatively quickly return to its pre-corona epidemic level. However, a longer lasting epidemic and contraction of the Danish economy can further reduce household consumption. (Memo available in Danish only)