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Denmark is set to extend economic recovery for the fifth consecutive year. Recovery in the Nordic nation has been relatively moderate till now. But there is more distinct possibility of a more robust recovery on robust economic growth and rising employment.
Exports were a disappointment in 2016, but stronger global GDP growth should pave the way for a recovery in exports. The global economy is on the cusp of a synchronous recovery and if sentiment truly turns positive, Denmark could be witnessing significantly stronger increases both in consumer spending and investment.
"We expect the Danish economic recovery to remain on track, supported by a growing labour force and stronger global and domestic demand. There is a risk of the economy overheating within the next few years, although it could also take the opposite course," said Danske Bank in a report.
Statistics Denmark's survey shows far more positive GDP and productivity figures for Denmark. Public consumption rose by more than expected and will probably support GDP growth in 2017. Fiscal policy is likely to be tightened in 2018, adds Danske Bank.
