Danish businesses struggled in 2023

In 2023, many Danish companies faced economical difficulties, with a mix of profits and losses across sectors. Beierholm’s analysis of 179,630 financial statements showed a 41% fall in net results for small and medium-sized enterprises, from 1184 billion to around 700 billion kroner. This decline was attributed to high inflation, rising interest rates, and overall market instability. The energy sector, in particular, was affected by volatile electricity prices. Real estate companies suffered due to increased interest expenses and property value depreciation, with a turnover from a 56.1 billion kroner surplus in 2022 to a 4.4 billion kroner deficit. Conversely, the production sector improved by over 50% amid steady raw material costs and passed-on price increases. While forecasting 2024 remains challenging, labor cost increases and fluctuating interest and exchange rates are expected to differentially impact businesses.