Danish government changes tune and upgrades growth expectations for 2023

Ben Hamilton
May 17th, 2023

Inevitably political commentators are questioning its cautious approach, including the decision to abolish Store Bededag

Welcome boost for Danish economy (photo: thebluediamondgallery.com)

The government will upgrade growth expectations to 0.6 percent for 2023 at a press conference later today, reports TV2.

Previously the predicted growth was just 0.2 percent, as confirmed in March, so the outlook for the Danish economy has improved considerably over the second quarter of the year. 

The acting minister for economic affairs, Stephanie Lose, will also release predictions regarding inflation, which is expected to fall to 4.3 percent by the end of the year and then to 3.0 percent in 2024. 

The outlook chimes with the viewpoint of Arbejderbevægelsens Erhvervsråd, which had previously accused the government of underestimating the state of the Danish economy. 

High employment, strong exports, decreasing inflation
TV2’s own financial analyst, Ole Krohn, attributes the renewed optimism to high employment, robust exports and continued fall in inflation.

And certainly, the whispers are growing that Denmark might avoid the financial crisis so confidently predicted during the second half of last year.

And again, certain media are again questioning the decision by the government to abolish Store Bededag, the first of the public holidays to fall after Easter, from next year onwards.

One of them is TV2 political editor Hans Redder who recently wrote: “The initially good news will however be difficult to handle. Because it fundamentally complicates andc some would say – punctures large parts of the narrative on which this government is built.”


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