Project Westfield

PROJECT WESTFIELD

Danish economy

IN THE PAST YEAR , the global economy has been affected by Russia’s invasion of Ukraine, which has resulted in high inflation and high interest rates. These negative developments are taking place in the wake of a Danish econ omy that is already affected by the aftermath of the coronavirus pandemic. Compared to other countries, Danish companies are prov ing extremely resilient despite the current sit uation, which can largely be attributed to the low unemployment levels in Denmark. As an offsetting correction to the negative GDP growth seen during the coronavirus pandemic, 2022 saw GDP growth of 2.7% in Denmark, which is marginally below the GDP growth of 3.5% in the eurozone. The rel atively less strong growth in Denmark com pared to the eurozone in 2022 should be viewed in a context where Denmark’s econ omy, during the coronavirus pandemic, per formed relatively better than the eurozone with a decrease in GDP of 2.1% compared to

6.3% in the eurozone. The GDP growth is es timated to 2.5% in 2023 and 1.0% in 2024 in Denmark, and 0.5% in 2023 and 1.0% in 2024 in the eurozone.

Real GDP-growth, (y/y)

0% 2% 4% 6%

-10% -8% -6% -4% -2%

10 11 12 13 14 15 16 17 18 19 20 21 22 E23 E24 Eurozone Denmark

Source: Eurostat, Danmarks Statistik, Danske Bank per 30. June 2023

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