Outlook for the Danish economy – Solid upswing with increased labour market pressure

 Analysis – September 2017 – No. 16

Authors Danmarks Nationalbank
Subject Danish Economy; Current economic and monetary trends; Economic activity and employment; Recent economic and monetary trends
Type Analysis
Year 2017
Published 13 September 2017
The ongoing upswing in the Danish economy is solid, and the labour market pressure has increased. Growth in GDP is projected to rise to 2.3 per cent this year from 1.7 per cent last year, and the Danish economy will be in a boom in the coming years. So far, the upswing has been balanced. There is room for higher pressure on the economy during the boom, but overheating may occur suddenly and vigorously. The government should be prepared to initiate a fiscal tightening with a view to dampening growth in demand.