Denmark’s Convergence Programme 2006 is prepared in accordance with the reformed Growth and Stability Pact. The Convergence Programme is prepared once a year and sent to the EU.
Reaching an annualized growth rate of 3.5 per cent in the first half of 2006, GDP growth in Denmark has turned out considerably stronger than expected in the August survey.
This progress report is a follow-up on the National Reform Programme presented in the fall of 2005. Progress reports must be prepared in the intervening years within the defined three-year cycle for the Reform Programmes. This report describes the initiatives taken since the preparation of the Reform Programme in 2005, with the inclusion of the Commission’s assessment of the Reform Programme and the European Council’s conclusions from the March 2006 spring summit.
In several respects, the upswing in the Danish economy is stronger than expected in the May survey: private sector employment has increased strongly, unemployment has declined at an unabated pace, and domestic demand has increased more than previously expected. Imports too have increased more rapidly than expected in May, and the net external contribution to growth is increasingly negative. Strong growth in business investment is contributing to a broad-based expansion. On balance, GDP growth forecasts are broadly in line with projections in the May survey.
The central government budget proposal for 2007 and the agreements with local governments on the economy for 2007 reflect the economic priorities of the Danish government in 2007. The budget proposal also reflects the welfare agreement and the agreement on future immigration of June 2006.
Economic Survey, May 2006 – English Summary