The recovery of the Danish economy has gained momentum during 2013. It is not going fast, but the improvement is becoming more and more apparent. Over the past year both production, employment, and business confidence has increased throughout large parts of the Danish corporate sector, where gross value added is now approaching the level from before the downturn in 2008-09.
Budget Outlook 3, August 2013, presents a status of fiscal policy and central and general government finances.
Optimism and belief in progress is spreading both in Denmark and abroad, cf. figure 1.1. This points to higher demand in the times ahead, both from Danish consumers and businesses and from abroad. This strengthens the possibility of a turnaround in the Danish economy in the second half of 2013. The timing and strength of the turnaround will largely depend on developments abroad.
Budget Outlook 2, August 2013, presents a status of the general and central government finances.
As the economies abroad improve, the Danish economy is expected slowly to gain more strength in 2013. An annual growth rate in GDP of 0.5 per cent this year and 1.6 per cent next year is expected. Agreements on Growth Plan DK strengthen the growth prospects.
Budget Outlook 1, May 2013, presents a status of the general and central government finances.
Denmark has since 2008 been affected by the international economic crisis. Much has been done to support the economy, but the Danish economy is still facing three key challenges; There is a need to strengthen competitiveness and productivity growth. There is a need to enhance long term labour supply and to improve education. And there is a need for continued modernization of the public sector.
The recovery of the Danish economy after the downturn in 2008 has turned out to be sluggish. The government has taken a number of initiatives to boost demand and underpin employment in the short term. These initiatives have been implemented within the framework of sound public finances.