Denmark’s National Debt Hits 25-Year Low

Denmark’s state debt has reduced significantly, reaching a level not seen in over 25 years. According to new figures from the National Bank, the debt at the turn of the year was 294 billion Danish kroner, 28.6 billion less than the previous year. This debt corresponds to 10.5 percent of Denmark’s Gross National Product (GNP), the lowest recorded since the National Bank started tracking the metric. Kristian Skriver, a senior economist at The Danish Chamber of Commerce, attributes the low debt to recent public finance surpluses, high employment, low unemployment, and solid consumption levels. Fiscal discipline, where political spending is kept within budget allotments, also plays a part. The lower debt keeps Danish interest rates down and makes the economy more resilient in times of crisis, allowing for additional borrowing if needed. Denmark is among the EU countries with the lowest debt relative to GNP, only surpassed by Estonia, Bulgaria, and Luxembourg.