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.
Slowdown in growth and major challenges ahead
The Greenlandic economy is slowing down, with modest growth and serious challenges for public finances. This is partly because the expansion of infrastructure in the form of airports is nearing completion and planned major projects in energy supply and other areas have not yet begun. At the same time, vital shrimp stocks are declining, although cod fishing is doing better. Public finances deteriorated surprisingly sharply in 2025, and liquidity in the Greenland Treasury fell to a critically low level in the second half of the year. Consequently, the 2026 Finance Act contains necessary fiscal tightening measures. More fiscal challenges lie ahead, with a declining and ageing population putting further pressure on the economy.
Key messages
Why is it important?
Danmarks Nationalbank is the central bank for the entire Danish Realm. We are therefore responsible for analysing developments in the Greenlandic and Faroese economies to live up to our purpose of ensuring stable prices and ensuring the best basis for assessing the possible emergence of socio-economic imbalances.
Main chart
Greenland's population now and in the future
Source:
Statistics Greenland.