Lack of workers threatening economic recovery in Denmark

Growth forecasts scaled back slightly

Sep 15, 2016

Nationalbanken, Denmark’s central bank, said on Wednesday that a shortage of skilled and unskilled labour could threaten the country’s fragile economic recovery.

“It is important there are enough workers so that the turnaround doesn’t stall,” said Nationalbanken president Lars Rohde.

Denmark’s economy is expected to grow 0.9 percent this year, down from a June forecast of 1.0 percent. The bank has also trimmed its forecast for 2017 to 1.5 percent from the 1.6 percent estimated in June.

Brexit not a problem … yet
The economy could expand by another 1.8 percent in 2018, if the workforce grows.

Future economic growth is based on expectations that exports will grow 3.1 percent in 2017 and 2.7 percent in 2018.

Rohde said that Britain’s decision to leave the European Union has thus far only had a limited impact on the Danish economy, despite lower growth in general exports and consumption in the aftermath of Brexit.

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