Market Report 2022

Colliers Market Report 2022

113

bond yield climbed in 2021. Danske Bank predicts an infla tion rate of 1.6% in 2021 and 1.3% in 2022. In March 2020, the ECB launched its ongoing “Pandemic Emergency Purchase Program” (PEPP), an emergency measure aimed at helping eurozone economies to weather the crisis in the best possi ble way. In early September 2021, the ECB announced that it intended to ease the pressure, downscaling its government bond purchases up until the PEPP expires in March 2022. Conversely, the ECB is upscaling its ordinary purchase pro gramme as of Q2 2022. Irrespective of the sustained inflation ary increase, the ECB maintains its rate of interest of -0.50%, just as it maintains that high inflation is driven by temporary factors due to the reopening of society. Mid-December 2021, the Fed announced that it no longer per ceives high inflation to be a transient phenomenon. The Fed has therefore decided to downscale its purchase programme by a monthly amount of USD 30 billion, while giving notice of three rate hikes in 2022, expected to carry over into 2023. Favourable Danish framework conditions Danish framework conditions for running a business are excellent by international standards. According to TMF

Group’s “Global Business Complexity Index 2021”, Denmark is the easiest country in which to set up and run a business. This is further supported by the fact that Denmark ranks fourth in the World Bank’s “Ease of Doing Business” index in 2020, out ranked only by New Zealand, Singapore and Hong Kong. Stable government Broadly speaking, the Danish political system is highly stable, with a change of government only rarely leading to significant changes in the political or economic landscape. Supported by strong fundamentals, including limited sovereign debt, budg etary surpluses or equilibrium, and a healthy banking sector, Danish government bonds have for years been assigned AAA top ratings by Fitch, Moody’s, and Standard & Poor’s. In addition, for the fifth year running, Denmark was ranked among the top performers in the “Corruption Perceptions Index” published by Transparency International in 2020. Because of favourable business conditions, the stable polit ical system and the robust economy, many international investors continue to perceive Denmark as a safe haven for investments.

 CHRISTOFFER MORTENSEN, christoffer.mortensen@colliers.com

Danish inflation on the rise but still below the levels seen e.g. in Germany and in the USA

5%

4%

3%

2%

1%

0%

13 Denmark

14

15

16

17

18

19

20

E21

E22

Eurozone Germany

USA

Source: Statistics Denmark, Danske Bank