Prosperity growth facing demographic headwinds

Analysis - January 2018 - No. 1

Authors Ellermann-Aarslev, Christian; Hvolbøl, Tina Saaby; Pedersen, Erik Haller
Subject Danish Economy; Economic activity and employment
Type Analysis
Year 2018
Published 8 January 2018
The analysis contributes to the discussion of how high economic growth rates we can expect to see in the future. The analysis shows that on the domestic front the rising average life expectancy in the coming years will curb prosperity growth. However, this development can be countered by reforms which increase labour supply. We conclude that Denmark is well-prepared for the economic challenges entailed by an ageing population because Denmark has built up considerable net foreign assets and the public finances are sustainable.