Copenhagen Stock Exchange: Focus: The Danish Economy Takes A 'Standing Count', But Consumer Spending Will Save The Day

After a long period with high economic growth, the activity in the Danish economy is falling. And even though growth is expected to pick up next year, it will not be something to write home about in 2004, so predicts Chief Analyst Steen Bocian, Danske Bank, in Focus no. 67. In the article, he takes a closer look at the current development in the Danish economy with particular focus on the development in consumer spending.

A turnaround in consumer spending is a decisive precondition if the Danish economy is to leave the low-growth environment behind it. Despite the risk that rising unemployment could form a barrier in the way of the expected upturn in consumer spending, Danske Bank estimates that a net balance of factors will stimulate consumption. The progress in consumer spending is supported by very low interest rates, rising equity prices, the liberalisation of the mortgage credit system and tax cuts in 2004, and combined these factors will put an end to the very low consumer growth rates of recent years. Steen Bocian expects consumer spending to expand by 2.5%-3% in 2004.

Read the article "The Danish economy takes a 'standing count', but consumer spending will save the day" in Focus no. 67.