The current macroeconomic climate in Denmark

Research output: ResearchWorking paper

Abstract

The Danish economy has recovered remarkably during the last 15 years ? remarkably because the recovery does not really fit what would normally be expected from economic theory. An important explanation is the fact that the Danish economy is linked to a relatively small number of internationally high-income economies the business cycles of which are not synchronised. At the same time, the Danish economy is characterised by a highly dynamic and flexible labour market sustaining the Danish economic position. However, the current growth of the Danish economy is driven by private consumption which is not sustainable in the medium run. The future prospects of the Danish economy depend very much on the ability to increase private investments and what is going to happen in the German economy.
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The Danish economy has recovered remarkably during the last 15 years ? remarkably because the recovery does not really fit what would normally be expected from economic theory. An important explanation is the fact that the Danish economy is linked to a relatively small number of internationally high-income economies the business cycles of which are not synchronised. At the same time, the Danish economy is characterised by a highly dynamic and flexible labour market sustaining the Danish economic position. However, the current growth of the Danish economy is driven by private consumption which is not sustainable in the medium run. The future prospects of the Danish economy depend very much on the ability to increase private investments and what is going to happen in the German economy.
Original languageEnglish
Pages11
StatePublished - 2005
Publication categoryResearch
Peer-reviewedNo

    Research areas

  • Danish economy, Demand-driven growth

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ID: 166307