The IMF's analyses of the Danish economy

Abstract icon Following its recent Article IV mission trip to Denmark, the International Monetary Fund, IMF, concludes that Denmark has experienced a strong economy recovery after the covid crisis. Due to high uncertainty stemming from the war in Ukraine, the IMF recommends that the Danish authorities should stand ready to adjust economic policies if risks materialize. At the same time the IMF recommends targeted polies to mitigate risks related to increased risks in the housing market. Fiscal policy should continue to support a green and digital transformation.
Every year, a team of IMF economists visits Denmark to analyse the Danish economy. Half a year in advance, the IMF makes preparatory visits, known as interim visits. This is part of the IMF's surveillance of its member countries' economic development. During the visit, the IMF meets with relevant ministries, advisory bodies, trade and industry associations, and private sector participants. Among other things, the IMF's analysis includes recommendations for reforms of the national economy and is summarised in an Article IV report, which is compulsory according to article IV the IMF's Articles of Agreement, hence the name.

Since 1999, the IMF has prepared in-depth analyses of the financial system in connection with its Financial Sector Assessment Program (FSAP). The purpose is to reduce the risk of crises in the international financial markets. Since the financial sector in Denmark has been assessed to be systemically important in the international financial system, Denmark will undergo the FSAP approx. every 5 years.

In its recent FSAP report, the IMF finds that the resilience of the Danish financial system has been strengthened since its most recent analysis from 2014. This is attributable mainly to the activation of macroprudential instruments, improved supervision of banks and insurers, and strengthened crisis management frameworks.