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Denmark hikes economic growth forecast despite war, inflation
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COPENHAGEN (Reuters) – Denmark’s economy could grow as much as 3.4% this year despite the negative effects of the war in Ukraine and record high inflation, the finance ministry said on Thursday, a considerable upwards revision from its estimate from March.
COPENHAGEN (Reuters) – Denmark’s economy could grow as much as 3.4% this year despite the negative effects of the war in Ukraine and record high inflation, the finance ministry said on Thursday, a considerable upwards revision from its estimate from March.
“We came out of 2021 at an extremely high pace with a good starting point for continued growth,” Finance Minister Nicolai Wammen said in a government report published on Thursday.
“Although we must expect a slowdown in the Danish economy during this year, the level of activity will continue to be high,” Wammen said.
The forecast is an upgrade to an estimate released by the ministry in March, in which the economy was expected to grow 1.6% in a medium risk scenario.
However, in a scenario where the supply of Russian gas to Europe is cut off, the ministry only expects economic growth of 2%.
For 2023, the government forecasts growth of 1.9%.
The ministry expects inflation to rise to 5.2% this year in its main scenario, up from its March forecast of 4.5%.
The Danish central bank said in March it expected the economy to grow 2.1% this year.
(Reporting by Nikolaj Skydsgaard; Editing by Toby Chopra and Alison Williams)
Gross Domestic Product (GDP) measures the total economic output of a country, representing the value of all goods and services produced over a specific time period.
Inflation refers to the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually.
Economic growth is an increase in the production of goods and services in an economy over a period of time, often measured by GDP.
Monetary policy involves the actions of a central bank to control the money supply and interest rates to achieve macroeconomic objectives like controlling inflation and stabilizing currency.
A financial community consists of individuals, institutions, and organizations that engage in financial activities, including banking, investment, and economic development.
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