Denmark's central bank cuts growth outlook citing US tariffs, pharmaceuticals slowdown

COPENHAGEN (Reuters) -Denmark's central bank on Wednesday cut its GDP forecasts for 2025-2027, citing a negative impact from U.S. trade tariffs and weaker growth in the pharmaceuticals industry, where weight-loss drug maker Novo Nordisk has seen rising competition.

It now sees gross domestic product growing by 2% in both 2025 and 2026 against previous predictions, given in March, of 3.6% and 2.3%, respectively. It cut the GDP outlook for 2027 to 1.7% growth from 2%.

"Higher tariffs in the U.S. reduce global trade, which will dampen growth in the Danish economy," Nationalbanken said in a statement.

"Growth in the Danish pharmaceutical industry is also expected to be lower than in previous years," it added.

Novo Nordisk, the maker of blockbuster drug Wegovy has had a miserable year with stalling sales growth, profit warnings and a $400 billion share price plunge that triggered layoffs of some 9,000 people, more than half of them in Denmark.

(Reporting by Anna Ringstrom, editing by Terje Solsvik)