Outlook for the Danish economy – Prospects of a rapid recovery once restrictions are eased

Analysis - March 2021 - No. 7

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 2021
Published 17 March 2021
Abstract icon The second wave of the pandemic and new lockdowns have temporarily interrupted economic recovery and resulted in new large losses of activity in large parts of the Danish and international economies during the winter. However, other parts of the economy are seeing high activity, including construction and the housing market. Vaccination of the population and reopening of society have begun. Large savings, disbursement of holiday pay funds and accumulated demand provide a sound basis for a heavy increase in activity when the economy is less constrained by restrictions. Overall, activity is expected to have recovered towards the end of 2021.