Denmark Is Said to Raise 2021 GDP Growth Forecast to 3.8%
Denmark will raise its 2021 economic growth forecast to 3.8% from 2.4% seen in May as the Nordic nation recovers faster than expected from the pandemic, according to documents seen by Bloomberg.
The government will lower its 2022 gross domestic product growth estimate to 2.8% from 3.6% to reflect the improved outlook in the 2021 base year, according to the documents. The finance ministry is due to present new economic forecasts Monday at 11 a.m. in Copenhagen.
Denmark, which has one of the highest vaccination rates in the world, will end its last restrictions next month after the spread of the virus has been brought under control. Denmark has now regained all the GDP lost during the pandemic as the value of the economy is back to the level it was at the end of 2019, the national statistics agency said earlier this moth.
The finance ministry on Sunday lowered its financing need estimate to reflect that the government’s costs of aiding the economy will be smaller than expected.
These are some of the highlights the government will present later on Monday, according to the document. The finance ministry’s old forecasts from May are in parenthesis:
- House prices will rise 13.1% in 2021 (11.2%) and 3.8% (3.1%) in 2022
- Consumer prices will rise 1.3% in 2021 (1.1%) and 1.5% (1.5%) in 2022
- Private consumption will rise 3.2% in 2021 (2.7%) and 4.1% (4.3%) in 2022
- Public consumption will rise 4.7% in 2021 (3.8%) and decline 1.8% (0.9% decline) in 2022
- Budget deficit as % of GDP 1.9% in 2021 (3.1%) and a surplus of 0.4% (deficit 0.6%) in 2022
- Public debt as a % of GDP 40% in 2021 (40.9%) and 38.5% (41.5%) in 2022
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