Outlook for the Danish economy - The pressure on the economy should be eased

Analysis - September 2022 - No. 11

Authors Danmarks Nationalbank
Subject Danish Economy; Current economic and monetary trends; Economic activity and employment; International cooperation; Economic activity and employment
Type Analysis
Year 2022
Published 21 September 2022
Abstract icon Inflation is at 40-year high, and central banks across the world are currently tightening monetary policy. Together, these factors are dampening growth prospects for the Danish and international economies for the coming years. However, the combination of high inflation and a very tight Danish labour market carries the risk of self-reinforcing wage and price increases. Therefore, fiscal policy should help reduce the demand pressure as quickly as possible.