Bank sees strong economic trends this year and next

It is not easy to predict the future of the Danish economy due to uncertainties surrounding a potential U.S. trade war. Arbejdernes Landsbank initially delayed its economic forecast but now predicts growth of 2.4% this year and 2.1% next year, with notable uncertainty remaining. Chief economist Jeppe Juul Borre emphasizes that economic conditions can rapidly change, affecting the forecast. Recently, Statistics Denmark revised last year’s growth, indicating a 0.5% economic contraction in Q1, altering previous predictions for 2025 and raising growth estimates for 2026. The forecast also anticipates employment rising by 33,000 this year and 30,000 next year, inflation stabilizing, and continued increase in housing prices. The negative impact of trade policies is less severe than feared, but affects European export markets more than direct U.S. exports, with lower interest rates aiding the economy.