The last seven years have been a blessing for the Danish economy, but nothing lasts forever, as the saying goes.
In fact, as the ramifications of Brexit and tariff conflicts between the US and China take hold, the good times might be over sooner rather than later, according to several Danish experts.
That sentiment was echoed by the Danish chamber of commerce, Dansk Erhverv, which predicts that stagnation could already start in 2019.
The Danish construction association, Dansk Byggeri, is also prepared for a downturn and expects the sector to see a lot of streamlining in the future as the industry declines. The construction sector has experienced a year with very high activity and the demand has reached a point where companies can’t keep up.
Well-oiled for crisis
The economies in Sweden, Germany and the UK – Denmark’s closest trading partners – have already lost pace in 2019, and although Denmark is primed to follow suit, the Danes are confident they are well positioned to meet the challenge.
The Danes and Danish companies have their budgets in order and assets saved up in the bank, while Denmark has a solid competitiveness ability without collecting great public sector debt. Most Danes will be hit on their pension savings, which consist, among other things, of shares.
“Overall, we are well-prepared to face a new downturn,” Tore Stramer, the chief economist with Dansk Erhverv, told TV2 News.