The Danish economy is projected to grow by 2.8% in 2021 and by 2.9% in 2022. With a severe wave of infections at the turn of the year, containment measures were reintroduced, hampering economic performance in the first half of 2021. The gradual reopening of the economy from March 2021 will allow an acceleration of demand and GDP. However, unemployment will only reach pre-pandemic levels in 2022.
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
Denmark has traditionally delivered high living standards to its citizens and left few behind. High and equally-distributed incomes translate into strong feelings of wellbeing according to a range of measures. What is more, there is equality of opportunities across generations in terms of income, education and health. Commitment to addressing environmental challenges has made Denmark a frontrunner in green growth.