OECD economic forecast places Denmark among its top ten richest nations – The Post

OECD economic forecast places Denmark among its top ten richest nations

Ageing population and slow productivity growth could be a hindrance, warn experts

May 9th, 2014 7:54 pm| by admin

The Organisation for Economic Co-operation and Development (OECD) expects that Denmark will retain and even improve its current level of welfare, according to its recent Economic Outlook report.

The report predicted that Denmark will maintain its position as one of the ten richest OECD nations and could potentially rise from tenth to seventh looking ahead towards 2060.

“Economic growth remains subdued, but is expected to gradually pick up as export demand rises, monetary and fiscal policies remain supportive, and confidence returns,” the forecast predicted.

The forecast advised that reviving productivity growth should be the main focus of the nation – an issue that the government has pushed to address with its recent growth plan revelation.

READ MORE: The Economist calls Danes 'Mediterraneans in disguise'

Ageing population
But Professor Philip Schröder from Aarhus University argued that Denmark can only stay in the top ten if it is compared to the more mature and old industrial nations that make up the OECD list.

”Outside of the OECD, there are a number of nations that are moving strongly ahead financially,” Schröder told Berlingske newspaper.

“For instance, there are countries in Asia and oil-rich nations that, if taken into consideration, would lead to Denmark steadily dropping down the list of the world’s wealthiest nations.”

Schröder added that the older industrial nations are all challenged by an ageing population, and that in many cases a dwindling labour force that weakens growth. Slow-growing productivity is also a hindrance, he argued.