See also
See the press conference and related publications
Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Danish economy defies global turmoil
The Danish and international economies have proven robust so far amid ongoing geopolitical and trade policy turmoil. Global growth is supported by high activity in technology and artificial intelligence, but is dampened by the war in the Middle East. This year’s strong growth in Danish GDP is driven by an extraordinary increase in the pharmaceutical industry’s production abroad in the first half of the year, but the rest of the Danish economy is also growing. However, the high growth does not result in a corresponding increase in Danish prosperity measured by gross national income, GNI. The Danish economy is expected to continue expanding in the coming years, driven largely by exports. Going forward, domestic demand will be driven by strong public demand, while labour‑market gains and rising incomes will support consumption. However, household consumption is still expected to account for a relatively small share of income from a historical perspective.
Key messages
Why is this important?
Danmarks Nationalbank continuously oversees the Danish economy to meet its objective of ensuring price stability. The bank therefore assesses developments in a number of areas and makes macroeconomic projections to obtain the best basis for determining whether socio-economic imbalances are building up. Because the bank’s interest rates are reserved for managing the krone exchange rate, it is important that other aspects of economic policy are aimed at ensuring a stable economy. We therefore make fiscal policy recommendations.
This analysis is supplemented by a thematic analysis that examines in depth the spread of artificial intelligence, AI, and its implications for the Danish labour market.
Main chart
Higher inflation with upside risks, but price developments are expected to be low and stable in the slightly longer term
Note:
The latest observation is August 2026. Core inflation is calculated as inflation excluding energy and unprocessed food.
Source:
Statistics Denmark and own calculations.