## Denmark: 2023 Article IV Consultation-Press Release; and Staff Report

_IMF Staff Country Reports, June 26, 2023_

## Source details

**Canonical URL:** [Denmark: 2023 Article IV Consultation-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2023/06/23/denmark-2023-article-iv-consultation-press-release-and-staff-report-535191)

## Other formats

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## Bibliographic details
- Published: June 26, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400245954.002

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### Economic outlook and recent performance
- The Danish economy "recovered strongly from the pandemic."
- "Economic activity is set to soften in the first half of 2023, followed by a gradual recovery."
- "Gross domestic product growth is expected to slow in 2023."

### Inflation, labor market, and risks
- "Strong output and employment growth has contributed to inflationary pressures."
- "Inflation will remain elevated in the near term."
- "Risks to growth are broadly balanced while upside risks dominate inflation."
- "Positive output gaps and high inflation are expected in the near term."

### Fiscal policy guidance and assessment
- "Near-term fiscal policy should support disinflation, given persistently elevated inflation."
- There is "uncertainty regarding the contractionary effects assumed in the fiscal plan."
- "Medium-term fiscal policy should be recalibrated as needed to adhere to the fiscal rules."
- The "structural balance will weaken to a deficit over the medium term mainly due to defense and demographic-related spending."

### Key thematic findings (concise)
- Recovery: impressive post-pandemic rebound in output and employment.
- Near-term trajectory: softening in H1 2023, gradual recovery thereafter.
- Inflation: elevated near term with upside risks predominating.
- Fiscal: near-term support for disinflation; medium-term recalibration to meet fiscal rules.
- Medium-term pressures: defense and demographic-related spending drive structural balance toward deficit.

*Source: Denmark: 2023 Article IV Consultation-Press Release; and Staff Report, June 26, 2023.*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/06/23/denmark-2023-article-iv-consultation-press-release-and-staff-report-535191_