Denmark’s economy entered a recession in the third quarter, as it recorded a second consecutive contraction owing to a slowdown in the pharmaceutical industry, official statistics showed Friday.

The country’s gross domestic product shrank 0.7 percent between July and September compared to the previous three-month period, according to Statistics Denmark.

It followed a 0.7 percent drop in the second quarter, tipping the country into a technical recession, which is defined as two consecutive quarters of contraction.

“The decline in the third quarter was primarily due to a decline in manufacturing, with the pharmaceutical industry contributing to the decline,” Statistics Denmark said in a statement.

Over the first six months of the year, Denmark’s GDP had actually grown by 1.7 percent year-on-year.

This was in large part thanks to the pharmaceutical industry and in particular Novo Nordisk — Europe’s biggest company by market capitalisation — which has seen a boost in sales of its anti-obesity treatments.

However, “today’s figures show an increase in private consumption,” noted Las Olsen, chief economist at Danske Bank, in a post on X, formerly Twitter.

“Income is rising even more. There is potential for more spending when and if consumer sentiment improves,” Olsen continued.

AFP