Denmark’s gross domestic product (GDP) is projected to grow 2.4 percent in 2021 and 3.6 percent in 2022 in the wake of the economic downturn triggered by the COVID-19 pandemic, the country’s Ministry of Finance said on Tuesday.
Based on Denmark’s economic performance in the first quarter (Q1) of this year, the ministry’s Economic Survey said that by the end of 2021, the country’s GDP growth will surpass the pre-pandemic level. Private consumption is projected to increase 4.3 percent in 2022, its highest level since 2004.
Denmark’s exports will also benefit from the recovery and are estimated to rise by as much as six percent in 2022, the biggest jump in over a decade.
The ministry also anticipates that economic growth will act as a catalyst for employment. It foresees the creation of 46,000 new jobs in 2021 and 2022, following the loss of 22,000 jobs in 2020.
Accordingly, “growth in 2022 is expected to be the highest in 15 years.”
“Together with the vaccine rollout and the gradual reopening, we now see the result of the government and the Folketing (Danish Parliament) holding the hand of Danish employees and companies with a historic fiscal policy effort throughout the crisis,” said Minister for Finance Nicolai Wammen in a press release.
The ministry also expects to see increased investment in green climate initiatives.
The report noted that the recovery of Denmark’s economy is moving at two speeds.
“We must not forget that some companies continue to be hit hard. This is especially true in the tourism and experience industries,” Wammen said.
According to the ministry, Denmark “remains among the countries that have coped best socioeconomically with the coronavirus crisis and stronger signs of growth are expected in Q2 and onwards.”
The Ministry of Finance publishes three Economic Surveys a year — in May, August and December.
