Market Report 2022

110

Colliers Market Report 2022

Speedy recovery due to strong Danish economy Expansive fiscal policies and an efficient rollout of the vaccination programme sof tened the economic setback, ensuring that activity was quickly restored to normal. A stable government and favourable business conditions position Denmark as an inves tor safe haven. Denmark was marked by restrictions and stunted activity at the beginning of 2021. Due to broad political backing, the swift rollout of vaccines and other measures, Danish economy made a strong recovery in terms of GDP growth as the year wore on. Irrespective of the uncertain future course of the coronavirus pandemic, Danish econ omy is just as strong at year-start 2022 as it was before the pandemic. Copenhagen remains a dynamo The Capital remains Denmark’s premier economic growth engine, in terms of growth and prosperity outperforming the rest of the country. As of year-end 2020, Greater Copenhagen accounted for more than a third (35%) of total Danish GDP, which is a slight increase from the 32% recorded in 2010. The drivers of the Capital’s mounting economic importance include strong job growth and strong population growth. Over the past decade, Copenhagen proper has seen an inflow of more than 120,000 new residents, corresponding to approx 18% population growth in this period. This trend is expected to continue up until 2045, with Statistics Denmark forecasting approx 13% population growth, corre sponding to some 107,000 new residents. Renewed GDP growth The coronavirus pandemic prompted an economic downturn, with Danish GDP for the first time since the financial crisis touching negative territory when it dropped to -2.1% in 2020. In 2015-2019, Danish GDP growth remained at or above the 2%mark. Danske Bank believes this will continue in 2021, expecting an offsetting correction to the pandemic in terms of year-on-year GDP growth of 4%. GDP growth is projected at 3% in 2022. Danish economy has bounced back faster and stronger from the crisis than feared, but the spread of new COVID-19 variants potentially causes uncer tainty about outlook.