Denmark Cuts Economic Growth Forecast for 2018-2019

(Bloomberg) -- Denmark’s government cut its forecast for economic growth this year and the next, voicing concern over cooling international trade and uncertainty about Britain’s exit from the European Union.

Denmark expects growth to slow further in 2020, according to a document seen by Bloomberg.

Weaker global trade will hit the Danish shipping industry and limit exporters’ access to key markets, the government said, cutting estimates for sales to Sweden and Germany, the country’s biggest export markets.

“The biggest risk from trade protectionism isn’t lower growth short term, but the persistent loss of benefits from international trade,” the government said in the document. Denmark generates about half of its output from international trade, making Brexit “a particular risk.”

Highlights from the report Denmark’s government is due to present on Monday at 1 p.m. in Copenhagen:

• The economy ministry sees gross domestic product growth of 1.7 percent in both 2018 and 2019, down from the 1.8 percent it previously estimated for both years.
• GDP growth will slow to 1.6 percent in 2020.
• Exports will grow just 1.7 percent this year, down from a 2.5 percent forecast in August.
• Exports will grow 2.6 percent in 2019 versus 2.8 percent earlier; export growth will slow to 2.3 percent in 2020.

Read more: Danish Fiscal Watchdog Slashes GDP Forecast After Summer Drought

To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net

To contact the editors responsible for this story: Christian Wienberg at cwienberg@bloomberg.net, ;Tasneem Hanfi Brögger at tbrogger@bloomberg.net, Jonas Bergman

©2018 Bloomberg L.P.