Danish economy defies headwinds with solid growth: ministry


  • World
  • Friday, 05 Dec 2025

OSLO, Dec. 4 (Xinhua) -- Denmark's economy remains robust despite higher tariffs and recent global turbulence, with the government forecasting continued solid growth and rising household purchasing power through 2027, the Ministry of Economic Affairs said on Thursday.

In its latest Economic Review, the ministry projects that Denmark's gross domestic product (GDP) will expand by 2.6 percent in 2025, 2.2 percent in 2026 and 1.6 percent in 2027, leaving the country in what it describes as a "moderate boom."

By comparison, the European Commission's Autumn 2025 forecast projects real GDP in the European Union as a whole to expand by 1.4 percent in 2025, highlighting that Denmark is expected to grow significantly faster than the EU average.

Employment is set to keep rising, inflation has been low and stable for a prolonged period, and real incomes are improving, the ministry said. It noted that, after significant turbulence earlier in the year, conditions in the international economy have become calmer, and the Danish economy "has managed to stand firm" through the volatility.

"It is no coincidence that the Danish economy is strong," said Minister of Economic Affairs Stephanie Lose in a statement, pointing to reforms implemented in good time that have laid the foundation for a resilient economy and rising employment. She said the Economic Review places particular emphasis on employment among older workers, an area the government is giving special attention.

Despite the positive macroeconomic picture, consumer confidence remains subdued, and many households still feel that supermarket prices are high, the review said.

Employment continued to grow during 2025 and is expected to rise by 38,000 people for the year as a whole. The ministry forecasts that overall demand in the economy will be sufficient to support further increases of 13,000 jobs in 2026 and 7,000 in 2027.

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