## Denmark: 2016 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Denmark

_IMF Staff Country Reports, June 27, 2016_

## Source details

**Canonical URL:** [Denmark: 2016 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Denmark](https://www.imf.org/en/publications/cr/issues/2016/12/31/denmark-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-44007)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/denmark-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-44007/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/denmark-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-44007/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/denmark-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-44007/bundle-manifest.json)

## Bibliographic details
- Published: June 27, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475533460.002

---

### Executive summary
- Denmark has a longstanding track record of sound economic and social policies, but economic performance has been relatively weak for an extended period.
- The economy continues to grow slowly: recorded growth was 1.3 percent in 2014 and 1.2 percent in 2015.
- Growth in 2015 was driven mostly by private consumption supported by rising employment and real incomes.
- Relatively strong performance in the first half of 2015 was partly undone by flagging exports in the second half of the year.
- Denmark has consistently run current account surpluses in recent decades, largely reflecting structurally high retirement savings within its funded pension system.

### Key findings and indicators
- Real GDP growth:
  - 2014: 1.3 percent
  - 2015: 1.2 percent
- Main domestic driver of 2015 growth: private consumption (on the back of rising employment and real incomes).
- External sector: export weakness in the second half of 2015 reduced earlier gains.
- External balance: persistent current account surpluses over recent decades attributable mainly to structurally high retirement savings in the funded pension system.

### Analysis of drivers
- Domestic demand:
  - Private consumption was the principal proximate source of growth in 2015.
  - Employment and real income increases supported household spending.
- External demand:
  - Exports weakened in the second half of 2015, offsetting part of the earlier-year momentum.
- Structural factors:
  - Funded pension system contributes to structurally high retirement savings, underpinning recurring current account surpluses.

### Topics covered
- Banking
- Central bank policy rate
- Financial services
- Housing prices
- Income
- Income inequality
- Inflation
- Labor
- National accounts
- Prices

### Keywords highlighted
- Central bank policy rate
- CR
- data
- Denmark
- employment growth
- Global
- government finance statistics data
- Housing prices
- Income
- Income inequality
- ISCR
- labor market condition
- liability positions vis-à-vis nonresident
- money market rate
- rate
- trade balance

*International Monetary Fund — Denmark: 2016 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Denmark*

---

## Content in this bundle

- **Cr16184**
  - [Cr16184 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16184.pdf.md){rel="alternate" type="text/markdown"}
  - [Cr16184 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2016/_cr16184.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/denmark-2016-article-iv-consultation-press-release-staff-report-and-statement-by-the-44007_