Copenhagen Stock Exchange Focus: Top Ranking For Danish Economy

The Danish economy has moved on from the economic slowdown. The upswing is driven by private consumption and investments. The question is only how strong the recovery will be and for how long it will last as increasing oil prices may drag down growth a little – however, still without threatening the recovery. If the Danish economy is to create new momentum, it is crucial that private consumption moves up a gear and becomes more broad-based, writes Chief Economist John Madsen, Nykredit Markets in Focus no. 89, which has been published by the Exchange today.

The labour market is on the brink of a reversal, and John Madsen sees the potential for an increase in the employment rate primarily in the construction industry and the service sector. Unemployment has decreased by 12,000 persons since December, however, this does not reflect an improvement in real terms. Intensified activation measures have been a decisive contributing factor.

John Madsen assesses that the Danish economy is fundamentally sound and would pass handsomely when comparing with other economies, both in terms of cyclical and structural aspects. Some structural changes still remain, but the problems are not insuperable from an international perspective.

Read the article ’Top ranking for Danish economy’ in Focus no. 89. Questions to the author may be sent to the e-mail address info@cse.dk info@cse.dk until 17 September 2004.