EU: Denmark’s economy in good shape, but challenges persist

Economic growth has averaged 1.9 percent since 2014

According to an analysis of Denmark, which is published annually by the EU Commission, the Danish economy looks to be in solid shape.

The report (here in English) found that economic growth in Denmark has averaged 1.9 percent since 2014 and that reforms have helped a record number of people to find employment. However, a shortage of skilled workers continues to hamper development.

“The favourable economic environment has helped reduce the current account surplus and brought down the level of household debt – but challenges remain. Labour market and pension reforms have helped bring the number of people in employment to historically high levels,” the report found.

“However, companies are increasingly reporting shortages of skilled workers, and the government is falling behind on its 2025 targets to boost productivity growth and the supply of labour.”

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Hurdles to handle
The report also found that economic growth is expected to gradually slow down to 1.5 percent, while public finances are due to be balanced over the next year, before showing a slightly larger surplus in 2020.

And yet challenges persist, including finding the investment required for skilled workers, research & development, and transport infrastructure, while reducing the dropout rates of students and incentivising them to choose a vocational education, thus increasing the employability of vulnerable groups.

“Things are going well in Denmark. Public finances are in order and employment is at a record high. Since the parliamentary election, Denmark’s GDP has risen by 118 billion kroner – the equivalent of 100 million kroner every day,” said the finance minister, Kristian Jensen.

“In the light of what we are seeing now with the global economy, it’s good news that the Danish economy is standing strong following a number of years with this government at the helm.”