Colliers Market Report Denmark 2023

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Colliers Market Report 2023

ket. Dansk Bank expects this trend to carry over into 2023 and likely drive up prices even further. Although the pace of energy and natural gas price hikes started to slow in the final months of 2022, general prices will probably continue to fluctuate due to the war in Ukraine. In addition, it takes some time for changes in energy and natural gas prices in the wholesale market to feed through to consumers.

High inflation rates triggered multiple sharp inter est rate hikes in Denmark in 2022, with Danske Banks expecting the annual inflation to close at 7.8% in 2022. In the final months of 2022, the ECB expressed doubts as to whether inflation will fully stabilise before 2024. Following suit, the Danske Bank inflation forecast for 2023 exceeds the latest 10-year average. In 2023, Danish inflation is expected to be 4.9%.

Drop in consumer spending despite saving spree during the coronacrisis

Danish GDP growth projected to dip into negative terrority in 2023

0% 2% 4% 6% 8%

0% 2% 4% 6% 8%

-8% -6% -4% -2%

-8% -6% -4% -2%

14 15 16 17 18 19 20 21 Eurozone Denmark

E23 E22

E23 E22 14 15 16 17 18 19 20 21 Eurozone Denmark

Note: Growth in consumer spending (y/y). Source: Eurostat, Statistics Denmark, Danske Bank, Colliers

Note: Growth in real GDP (y/y. Source: Eurostat, Statistics Denmark, Danske Bank, Colliers

Danish unemployment rate may edge up in 2023, ending a historically low level

Unprecedented interest rate hikes in 2022 expected to carry over into 2023

10% 12% 14%

-1.0% -0.5% 0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0%

0% 2% 4% 6% 8%

14

15

16

17

18

19

20

21

22

14 15 16 17 18 19 20 21 Eurozone Denmark

E23 E22

Eurozone (3M) Denmark (3M)

Eurozone (10-year gov. bond) Denmark (10-year gov. bond)

Source: Eurostat, Statistics Denmark, Danske Bank, Colliers

Note: Short-term interest rates (CIBOR, 3M) and 10-year gov. bond yields. Source: Eurostat, ECB, Nasdaq OMX Nordic, Colliers