It seems that the expectations became more positive, and that this change of mood among consumers also helps to explain the upswing in 1994. As stated, Denmark’s economic situation today is significantly better than in 1993. If the slowdown becomes more pronounced in the near future, public finances, via the automatic stabilisers, will themselves help to stimulate the economy.
The automatic stabilisers in the Danish economy are rather strong compared to many other countries, and when they come into play in a downturn, the surplus on government finances will diminish. However, since the starting point is the strong budget balance that Denmark has built up in recent years there is also scope to allow this to take effect when the economy dampens.