There is one interesting thing noticed in the country that demonstrates negative interest rates.

As Bloomberg informs, the Danes became wealthier than ever. Central bank of the country confirms it by showing data on savings and home equity. However, people are spending less. The difference between private consumption and households wealth is widest in three decades.

Economists are puzzled, since borrowing costs after six years of negative rates are the lowest today.

The most obvious explanation is that the Danes still have too fresh memory of economic crisis and understand that benefits might disappear very fast.

The Danes were not so careful before. During decades spending rose along with wealth. This connection was destroyed during global financial crisis.

Fear of theft is also adding to the problem.

Although private consumption grew by 0,9% in the first quarter, it is not enough to stop economy shrinking. This year GDP growth most likely will not exceed 2%.