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.
The Danish economy has entered a phase of stable growth and increasing employment. GDP-growth has been around 2 per cent the last two years, and is expected to continue growing in the coming years. Danish economy is thus approaching a cyclical upturn. The cyclical upturn may last for several years, but depends on a sufficient labour supply. Structural reforms will help create room for further, sustainable job growth.
The Danish economy is in a period of stable growth and rising employment. GDP has increased by around 2 per cent the last two years, and the economic expansion is expected to continue in the coming years. Thus, the Danish economy is entering an economic boom phase.
In common with the rest of the world, technological development in Denmark is currently accelerating. Moreover, Denmark is increasingly connected via digital solutions, and public authorities, businesses and citizens are becoming ever more dependent on the Internet and on the opportunities afforded by the Internet.
Within a few years, Denmark is expected to be under-represented in the EU institutions. With fewer Danes in the EU the opportunities for information and influence will be weakened. The Danish Government will therefore strengthen efforts to secure recruitment of more Danes in the EU institutions.
The 2030 Agenda and 17 SDGs together constitute a vision for our world and planet and a call to action. Delivering on this promise will require an enormous effort, and rightfully so. Lack of ambition is not an option when it comes to our people’s and planet’s collective well-being.
Economic Survey, December 2016 presents an updated forecast for the Danish economy and public finances in the period 2016-2018. In the updated forecast the cyclical upswing in the Danish economy strengthens the actual budget balance. The stronger business cycle emphasizes the need for a gradual adjustment of fiscal policy. Fiscal policy is planned in order to reduce the structural deficits towards structural budget balance.
The upturn continues despite heightened international uncertainty.
The upturn in the Danish economy continues. Measured by GDP the pace is not high, but employment is increasing strongly, also stronger than expected. Last year GDP grew by 1.2 per cent, and this year and next year growth is estimated at 1.1 per cent and 1.7 per cent.