Progress in the Danish economy calls for a less accomodative fiscal policy stance

The Danish economy has been strengthened through 2015, and both GDP and employment have grown. The economy is not booming, but growth has been strong enough to drive a significant improvement in the labour market, and employment in the private sector has increased by 66,000 persons since the turnaround in 2012. As the business cycle continues to improve, the need for a gradual reversion of the accommodative fiscal policy grows. This is documented in the Economic Survey, released by the finance minister Claus Hjort Frederiksen today.


Progress in the Danish economy – but public finances are weakened

The Danish economy is improving. Since mid-2013 almost 45,000 persons have gained private employment, and unemployment is down. Progress in the labour market is expected to continue, and GDP growth will rise over the forecast period. Public finances are, however, in a worse condition than previously expected. Hence, it has been necessary to reduce the fiscal room for manoeuvre in 2016. This is documented in the Economic Survey, announced by finance minister Claus Hjort Frederiksen.