Engelsk

Denmark's international investment position, IIP, increased in the 2nd quarter of 2020 by kr. 16 billion in the wake of the decline of kr. 289 billion in the 1st quarter of 2020. Hence, the increase in the 2nd quarter could not offset the decrease in the 1st quarter, which was primarily due to price losses on Dane's holdings of foreign stocks.

The net financial wealth of Danish households increased in the 2nd quarter by kr. 380 billion. Thus, 72 per cent of the significant losses of kr. 525 billion in the 1st quarter are recovered overall. Households' net financial wealth is kr. 5,272 billion at the end of the 2nd quarter.

On the behalf of the Danish government, the Danish central bank has net sold government securities for kr. 260 billion since March. Foreign investors have increased their holdings by a total of kr. 154 billion while domestic investors have increased their holdings by the remaining kr. 106 billion.

From April to August, Danish investors have purchased foreign bonds for kr. 86 billion and foreign stocks incl. investment funds for kr. 108 billion. The purchase occurred after the significant sale of foreign securities in March where closures and uncertainties caused a large decline in prices on global stock markets.

The Danish labour market experienced a historically severe setback after the partial shutdown of the economy but is now recovering. This Economic Memo gives a detailed account of the developments on the Danish labour market over the past six months and serves as the foundation for Danmarks Nationalbank’s Outlook for the Danish economy, September 2020. (Memo available in Danish only).

More than half of the Danish homeowners' total mortgage loans of kr. 1,712 billion is now again with a fixed interest rate, more precisely kr. 856.6 billion. The last time fixed-rate loans accounted for more than half of the loans, was in 2009. The lowest level was in 2012 with just 31.5 per cent.

The interest rate including administration fees on the Danes' mortgage loans in August is on average 1.61 per cent p.a. This corresponds to an annual expense before taxes of kr. 16,100 per borrowed million. The kr. 8,100 of this is fees to the mortgage credit institution, while the remaining kr. 8,000 is interest payments to the bond investors behind the loan.

Since the reopening, economic activity has picked up in large parts of the Danish economy. However, the lockdown resulted in large economic losses, and Danish GDP is expected to decrease by 3.6 per cent overall this year. Internationally, many countries are in deep recession. This puts a damper on Danish export opportunities in the future. At the same time, some domestic industries will be subject to restrictions for a period of time. Recovery will be more gradual for these industries. The different relief packages are useful in the current situation. However, they should be phased out in line with restrictions being lifted, as they hamper business sector dynamics and labour market mobility.