The Danish economy is currently operating above potential. Employment is at record high levels and continues to increase, while unemployment has dropped to a low level. The upswing started in 2013, and the Danish economy has now reached a stage in the business cycle, where the growth rate naturally slows down. GDP expanded by approximately 2½ per cent per year in 2015-2018, and the economy is expected to grow by 2.0 per cent in 2019 and approximately 1½ per cent in 2020 and 2021.
The Danish economy has a strong foundation, and the conditions are good for the economic upswing to continue in 2019 and 2020. The economy is expected to grow by 1.7 per cent in 2019 and 1.6 per cent in 2020, which is a slight dampening compared to the past four years, where GDP has expanded by an average of 2 per cent per year.