IMF trims Danish growth forecast for 2024

The International Monetary Fund (IMF) estimates that the Danish economy will grow by 2% in 2024, driven by the pharmaceutical industry and the reopening of the Tyra gas field. This aligns with the National Bank’s latest biannual growth forecast from March, which projected a 2.4% growth for the current year. Economists from the IMF, an organization of 190 countries, have been consulting with key institutions in Denmark to assess the economic situation. The report concludes that the Danish economy remains robust but growth is expected to decline slightly to around 1.5% in 2025, with similar rates in subsequent years due to decreasing export growth in the pharmaceutical sector. The IMF also observed signs of a weakening labor market momentum, with unemployment inching up and fewer companies reporting labor shortages as a production constraint. Consequently, the IMF suggests structural reforms to support the labor market.