Outlook for the Danish economy - Prospects of moderate recession the coming year

Analysis – September 2020 – No. 18

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 23 September 2020
Since the reopening, economic activity has picked up in large parts of the Danish economy. However, the lockdown resulted in large economic losses, and Danish GDP is expected to decrease by 3.6 per cent overall this year. Internationally, many countries are in deep recession. This puts a damper on Danish export opportunities in the future. At the same time, some domestic industries will be subject to restrictions for a period of time. Recovery will be more gradual for these industries. The different relief packages are useful in the current situation. However, they should be phased out in line with restrictions being lifted, as they hamper business sector dynamics and labour market mobility.