
Private sector salaries rise in Denmark
In the fourth quarter of 2024, salaries in Denmark’s private sector grew by 4.6% compared to the same period the previous year, according to rapid figures from the Danish Employers’ Association (DA). Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, highlights that the wage increases have outpaced price rises throughout 2024, leading to an increase in purchasing power for many Danes. Contrarily, in 2022, prices had outstripped wages. Preliminary data indicate consumer prices increased by 1.6% in the last quarter, while real wages – the actual purchasing power of earnings – went up approximately 3% in the last year. However, Borre notes that not all Danes have experienced this income growth and that the inflation shock from 2022 is still affecting consumer confidence and spending but expects an improvement in consumer confidence and private consumption throughout 2025.