Denmark heading for budget deficit higher than the EU allows – The Post

Denmark heading for budget deficit higher than the EU allows

Marginally over the permitted 3.0 percent

Danish economy is expected to grow and the budget deficit to decline to 1.7 percent in 2017 (photo: iStock)
November 5th, 2015 6:45 pm| by Lucie Rychla

The European Commission predicts that Denmark is heading for a budget deficit higher than the EU allows, reports TV2.

Based on the European Commission’s autumn economic forecast, the Danish budget deficit will be 3.3 percent in 2015.

According to the EU rules, member countries should not exceed 3.0 percent.

Denmark expected to recover
However, the EU Commission remains optimistic about Denmark’s future and predicts the budget deficit will drop to 2.5 percent by the end of 2016 and to 1.7 percent in 2017.

Danish economy is expected to continue recovering in the coming years and to grow by 1.6 percent this year, by 2.0 percent next year and by 1.8 percent in 2017.

The EU Commission forecasts unemployment in Denmark will also continue to decline from 6.1 percent this year to 5.8 percent in 2016 and to 5.5 percent in 2017.

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