Outlook for the danish economy - Boom with no signs of imbalances

Analysis - September 2018 - No. 15

Authors Danmarks Nationalbank
Subject Danish Economy; Current economic and monetary trends; Recent economic and monetary trends; International Economy; Economic activity and employment
Type Analysis
Year 2018
Published 12 September 2018
The boom in the Danish economy continues, with robust growth and rising employment. Average growth in real GDP in 2017-18 is forecast at 1.8 per cent, with similar levels the next two years. Labour market pressures are mounting, and wage growth has accelerated a little. There is room for this in the economy. In good times it is important to prepare for the period after a cyclical reversal. Fiscal policy should contribute to a continually balanced upswing and should not stimulate demand further. Dampening of growth towards the end of the boom does not call for special economic policy measures.