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Denmark presents “tight” fiscal budget to fight inflation
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COPENHAGEN (Reuters) – Denmark’s government presented on Monday what it said was a “tight” fiscal spending plan for 2023, seeking to help bring down soaring inflation with a much-delayed budget for the year.
COPENHAGEN (Reuters) – Denmark’s government presented on Monday what it said was a “tight” fiscal spending plan for 2023, seeking to help bring down soaring inflation with a much-delayed budget for the year.
“The primary aim is to get Denmark through tough times,” Finance Minister Nicolai Wammen told reporters, calling the government’s policy a “very responsible and broad fiscal budget”.
“It’s a fiscal budget that doesn’t add fuel to the inflation, but that fights it instead,” he added.
The fiscal budget presented on Monday has a tightening effect on the economy equivalent to 0.9 percentage point, the government said.
Danish consumer prices rose last year at a 40-year high rate of 7.7% but inflation is expected to ease to 3.9% this year and 2.8% in 2024, the government announced in March.
The broad budget deal in parliament came after a five-month delay following a snap election and change of government in late 2022.
(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country's borders in a specific time period.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve economic objectives.
Economic growth is an increase in the production of goods and services in an economy over a period of time, often measured by GDP.
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