Danish Bank predicts higher growth in Denmark

Danske Bank anticipates a 2.1% growth in the Danish economy for 2024, surpassing the preliminary estimate of 1.8% in 2023. This growth projection is 1.1 percentage points higher than their previous forecast. The positive outlook is attributed to stronger economic momentum than expected at the start of the year, and the pharmaceutical industry, led by Novo Nordisk, performing better than anticipated. Chief economist Las Olsen expects increased real wages to enhance purchasing power and consumer confidence, with housing construction stabilizing and interest rate cuts boosting growth. Private sector wages are predicted to rise by 5.3% with inflation at 2.0%, improving purchasing power and contributing to a 2.2% rise in private consumption and a 3.0% increase in house prices. Growth for 2025 is projected at 2.0%, a 0.4 percentage point revision from earlier predictions.