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.
Budget Outlook 3, September 2015 gives a brief status on the fiscal policy, the general government finances and the central government finances.
The recovery in the Danish economy has continued into 2015, and in the first quarter GDP was 1.7 per cent above the level in the same quarter in the previous year. The recovery is visible in the labour market, where private sector employment has risen by about 45,000 persons from mid-2013.
The recovery of the Danish economy is well under way, with increasing growth and rising employment. In the second half of 2014 the economy gained momentum, and progress is expected to continue both this year and next year. Growth abroad is no longer the sole driver of the Danish economy, domestic demand has also gained momentum, which is expected to boost growth during the forecast period.
The government’s reforms and initiatives increase the opportunities for growth and strengthen employment and business conditions. The Danish National Reform Programme for 2015 outlines the government’s reform strategy and follows up on country specific EU recommendations.
The recovery of the Danish business cycle has been well under way for some time. Production is increasing in large parts of the private sector, and private sector employment has increased by more than 38,000 persons since the turnaround began in the second quarter of 2013. The recovery is expected to gain momentum this year and the next year according to the Convergence Programme for 2015.