Outlook for the Danish economy - Prospects of gradual economic recovery

Analysis – June 2020 – No. 12

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 17 June 2020
Behavioural changes and measures to contain the spread of coronavirus have hit the Danish and international economy hard, and prospects are for a record economic downturn in the 1st half of 2020. Since mid-April, the Danish economy has gradually reopened and activity has picked up. GDP is expected to contract by 4.1 per cent this year, driven primarily by developments in the first half of the year. The recovery is likely to be sluggish, especially because of subdued foreign demand. As a result, the economy is expected to be in a mild recession by the end of 2022.