Although the Danish economy today is sound there have been bumps on the road… The Danish economy boomed in the mid-2000s and ended up over-heated with big imbalances in terms of a housing bubble, loss of competitiveness, and high household indebtedness. The economy was particularly hard hit by the financial crisis almost ten years ago, and it has taken a long time to recover.
Since 2012 the economy has been in an upswing with growth in employment and a closing output gap. We expect this to continue in the coming years with growth in real GDP of around 1.6 per cent per year. There are currently no major imbalances in the economy that call for immediate political action. Danish firms today are very competitive.