The Danish economy is still strong according to the economic report despite a new reality with higher tariffs. This is evident from the forecast for the Danish economy, which will be presented on Thursday by Minister of Economic Affairs Stephanie Lose (V). After great turbulence in the spring, the international economy has become calmer.
- The Danish economy has defied the global turmoil and is really strong, and that is very, very pleasing. But we are still in a situation where there is great uncertainty in the international economy, she says.
According to the economic report, GDP will grow by 2.6 percent in 2025 and 2.2 in 2026. Employment continues to increase, and inflation will reach 1 percent in 2026.
The government's expectations for economic growth in 2025 have thus been increased from 1.4 percent in August to 2.6 percent in the new report. The expectations for next year's growth have also been raised from 2.1 percent to 2.2 percent.
The minister warns that the tariff level remains high in the United States, which has imposed additional tariffs on a number of countries this year, which will reduce the gains associated with international trade.
For example, this has affected Danish companies, including Novo Nordisk and others in particular, which have had to lay off people. But this has not been the norm for the overall labor market, because employment appears to be on the rise.
It thus appears to be reaching new records, and the opportunities are therefore good when the many thousands have to find new jobs. Many seniors are staying in the labor market to a greater extent and have contributed a quarter of the total growth since 2019.
- This is a really positive development. I am happy that experienced employees show every day that they are needed in the Danish labor market, says Stephanie Lose.
Lower electricity tax helps
Inflation rose sharply after the corona crisis and especially Russia's full-scale invasion of Ukraine in 2022, and many citizens have been affected by rising food prices.
- Some goods have risen in price a lot, and I understand that many Danes think that things have become more expensive, because it is more expensive to put many things in the shopping cart, says Stephanie Lose.
She points out that the government has several VAT and tax cuts on the way to compensate for this, but that they will not take effect until January 2026. It is especially the lower electricity tax that is expected to help inflation fall.
This summer, the government decided to lower the electricity tax to the EU's minimum tax in 2026 and 2027.
The government expects real wages and purchasing power, as well as house prices, to increase broadly. The economic statement is presented three times a year - in May, August and December respectively. The statement is an important basis for the organization of economic policy.
/ritzau/
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
