Economists: we’re not heading for recession

For the first time in months economists are talking domestic growth, not doom and gloom

February 14th, 2012 4:49 pm| by admin
facebooktwittergoogle_pluspinterestmail

With cautious optimism, top economists have declared Denmark safely out of the red zone and back on track for slow and steady growth.

Months of uncertainty over the fate of the Eurozone are fading now that Europe’s leaders have hammered out a plan for dealing with the debt crisis. And that’s “unequivocally good news for the world’s economy, to which we here in Denmark are so sensitive”, Hans Jørgen Whitta-Jacobsen, the leading advisor to the national economic council Det Økonomiske Råd, told financial daily Børsen.

Whitta-Jacobsen pointed to the stabilisation of the euro and the strong demand for Danish state bonds as two reasons why Denmark is out of the danger zone for falling into a new recession.

His observation was shared by top economists at two of the countryÂ’s biggest banks.

“The global trends are, for the moment, a whole lot more positive than what we feared just a month ago,” said Danske Bank senior economist, Steen Bocian.

“After a period of lots of angst, we’re back to where we started. We’re in a slow recovery with weak growth rates,” Jes Asmussen, a senior economist at Handelsbanken bank, added.

Job market experts are also noting continued positive growth, despite media focus on ‘perma-crisis’.

“The job growth is surprisingly stable, and that was also the case last autumn,” Kaare Danielsen, the president of Jobindex, DenmarkÂ’s largest job search portal, told Ritzau news service. 

“If you only read the newspapers, you would get very nervous,” Danielsen said, adding that the number of job announcements on Jobindex at the beginning of 2012 is actually up from early 2011.

Jyske Bank senior economist Niels Rønholt has also noted life signs in consumer activity, which will be key to revving the economy out of its rut.

“Sales of consumer products aren’t falling any longer. And, recently, car sales are also up,” Rønholdt told Børsen. “When you put those two things together, it looks like private consumption is going to rise for the first time in five quarters.”

Mariam Mosque's imam Sherin Khankan calls it a “feminist project” (photo: Kvinfo)
Denmark gets its first mosque for women
Denmark and Scandinavia's first mosque exclusively for women has opened up ...
The airport now offers 32 intercontinental routes (photo: iStock)
Copenhagen Airport makes bright start to 2016
Copenhagen Airport has made a strong start to the year thanks to a passenge...
Cirkus Panik (photo: Official facebook page)
Mid-February Kids: Don’t panic, here’s the circus!
Cirkus Panik Feb 13-21, 11:00 or 14:00; Skulhøj Allé 21, Vanløse; 70kr,...
photo: Sarah Coghill, White Light Gallery
Mid-February Performance: Modern Shakespeare hits the stage
Shakespeare Unplugged starts Feb 17, ends Mar 20, Mon-Fri at 20:00, Sat at...
Not often you see a double self-portrait
Her art endured despite patriarchal prejudice and the Skagen scandal
Marie Martha Mathilde Triepcke wanted a life full of passion and art. She g...
Some 2,000 candles, symbolising love, warmth and life force, will be used to mark the procession (photo: iStock)
Quiet march with candles to mark anniversary of Copenhagen terrorist attacks
A quiet march with candles will mark the sad anniversary of the Copenhagen...