The government has just released a new economic forecast, showing a significant upward revision of expectations for economic growth in Denmark. Minister of Economy Stephanie Lose (V) presented an expected growth of 2.7 percent for the current year on Thursday, a significant increase from the previous expectation of 1.4 percent announced in December. This positive revision reflects a surprisingly resilient Danish economy, despite challenges such as global inflation, rising interest rates, and general economic stagnation in many other countries.
“The Danish economy is strong, and neither the labor market nor the housing market show signs of slowing down, quite the opposite,” Lose stated during the presentation. The report, presented at 10:45, also indicates an expected growth of 1.8 percent in 2024. Interestingly, there is also an adjustment in expectations for employment, where the government now predicts an increase of 13,000 people in 2023, contrary to a previous expectation of a decrease. It is not until 2025 that a decrease in employment of 18,000 people is expected, which is a smaller decline than previously assumed.
Tore Stramer, chief economist at Danish Chamber of Commerce (Dansk Erhverv), commented on the forecast: “It is an optimistic forecast, signaling that activity in the Danish economy is expected to rise after a relatively mild economic downturn.” This upward revision of growth expectations is welcome news for the Danish economy and could potentially pave the way for further investments and improved economic stability in the years to come.