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It expects to witness its largest GDP growth in 15 years
The Danish Ministry of Finance has revealed that the economy is making a rapid and strong recovery following a difficult year. Moreover, it announced that it estimates that the GDP growth in 2022 will be the highest it has been in 15 years.
According to the Ministry’s Economic Report, the Danish economy has made strong progress. Since the country announced the reopening of businesses and society, the economy has begun to recover. More specifically, findings show that retail sales broke records in March, industrial production rose above pre-COVID levels, unemployment began to fall and exports rose significantly.
The Ministry of Finance predicts that GDP will grow by 2.4 percent this year and 3.6 percent in 2022; this is expected to be the largest GDP growth in 15 years. Other estimates show that the GDP levels at the end of 2021 must be higher than before the outbreak of the COVID pandemic.
Taking this further, the aforementioned Economic Report has found that growth in private consumption is expected to reach its highest level since 2004. Finally, export levels will also reach a 10-year high, with a growth of 6%.
Finance Minister Nicolai Wammen explains that the economy’s recovery is owed to the vaccine rollout, the gradual reopening, and the efforts of the Danish Parliament. Commenting on these measures, Wammen noted: “This has reduced the setback and strengthened the foundation for strong progress in the Danish economy – including increased investments in climate initiatives and green change.”
It is important to note that while the economy is quickly recovering, many businesses are still dealing with the negative impact of the pandemic. Wammen addressed this issue, explaining that different sectors have been affected differently and that one must not forget the companies which continue to struggle. As such, the government will continue to help these businesses – especially those that are in the tourism and experience industries.
The statistics and predictions found by the Economic Report place Denmark among the countries which have best coped with the effects of the pandemic.
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