Government to downgrade growth estimates again

Economy moving slower than expected this year

When the government presents its economic survey of the year thus far, projections for growth in the economy will once again be downgraded. According to Børsen financial daily, the government plans to roll back expectations even further than the 0.5 percent growth it announced in May.

At the end of last year, the government estimated that the economy would grow by 1.6 percent in 2013. That estimate was downgraded to 0.7 percent early this year and again down to 0.5 percent in May.

Sluggish production and a slower than expected recovery are being blamed for the lowering of expectations. Although production picked up a bit at the end of 2012, the bump was not strong enough to maintain the earlier, more optimistic projections.

“Production is not expected to gain momentum in the second half of the year," the government's economic survey from May stated.

The government is expected to maintain that there are brighter times ahead in 2014.