Danish and international economy hit by pandemic

Analysis - April 2020 - No. 4

Authors Danmarks Nationalbank
Subject Danish Economy; Current economic and monetary trends; Recent economic and monetary trends; International Economy; Economic activity and employment
Type Analysis
Year 2020
Published 3 April 2020
Economic activity has slowed sharply as a result of the outbreak of coronavirus, the measures to contain the infection and the resulting behavioural changes. A favourable starting point for the Danish economy improves its ability to deal with the economic consequences of the crisis. Danmarks Nationalbank supports the relief packages, which will temporarily help sustain employment and businesses, but more traditional fiscal stimulus may be needed going forward. Public debt will grow as a result of the downturn and relief packages, but there is room for that. For 2020 as a whole, real GDP growth is estimated to be between -3 and -10 per cent. (This publication is a translation of the analysis published 1 April 2020 in Danish only).