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Denmark Economic Snapshot

Economic Forecast Summary (June 2022)

Growth has slowed due to the Russia-Ukraine war, with GDP forecast to expand by 3% in 2022 and 1.4% in 2023. The resilience of the Danish economy is underpinned by its low reliance on fossil fuel imports and strong household, corporate and government balance sheets. However, consumer and business confidence have fallen considerably and inflation has increased to over 6%. Further energy market disruption could reduce growth and push prices higher again, while the tight labour market could trigger more sustained inflation if it leads to rapid wage growth.

Economic Survey of Denmark (December 2021)

Denmark has been a frontrunner in cutting its greenhouse gas emissions through a rapid shift to renewable energy and has set an ambitious legal commitment to reduce emissions by 70% by 2030 and reach carbon neutrality by 2050. Achieving these targets would contribute to global efforts to control climate change, but the transition will have large macroeconomic consequences and entail significant financial risk. This makes it crucial to adopt a cost-effective, inclusive and comprehensive strategy to cut emissions.

Executive Summary

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Reform Priorities (April 2021)

Going for Growth 2021 - Denmark

Digital and green transitions require reducing barriers to mobility, such as inefficiencies in the housing market and weak competitive pressures in some markets. Improving education and integration of minorities would increase inclusion and the capacity of migrants to make the most of labour market opportunities.

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2021 Structural Reform Priorities

  • Housing: Reduce distortions in the housing market
  • Competition and regulation: Strengthen competition
  • Tax system: Shift the tax structure towards immovable capital
  • Education and skills and labour market: Improve integration of refugees and migrants
  • Environmental policy: Address climate change cost-efficiently


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