IMF Staff Country Reports

Denmark : 2018 Article IV Consultation-Press Release and Staff Report

Author/Editor:

International Monetary Fund. European Dept.

Publication Date:

June 20, 2018

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This 2018 Article IV Consultation highlights continued solid growth in the Danish economy. The output gap has seemingly closed for the first time since the global financial crisis. Unemployment is low and close to its estimated structural level, with signs of labor shortages and capacity constraints in some sectors. Inflation remains subdued. Property prices in urban areas are rising swiftly, and household debt remains elevated despite recent deleveraging. The increasingly binding constraints highlight Denmark’s reduced growth potential, reflecting structurally weak productivity growth and the postcrisis investment slowdown. The outlook is for continued robust growth, which is projected to exceed its trend in the near term, reaching 2.0 percent in 2018 and 1.9 percent in 2019.

Series:

Country Report No. 18/177

Subject:

Article IV consultation reports Current account surpluses Debt sustainability analysis Economic indicators Fiscal policy Investment Labor market policy Press releases Productivity Staff reports Tax reforms