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EU has rosy outlook on Danish economy
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November 7th, 2013
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After three years of economic stagnation, indicators suggest a GDP growth of 1.7 percent in 2014, up from 0.3 percent this year.
After being stalled in an quagmire for the past several years, the Danish economy is expected to bounce back over the next couple years, according to a new report from the EU Commission.
The report, part of the commission’s ‘Autumn 2013’ forecast for the economic future of EU member states, showed that the EU expects Denmark's GDP to improve significantly in 2014.
“After three years of economic standstill, indicators are now pointing to an improvement in the Danish economy, with positive readings of confidence indicators, growing industrial production and increasing house prices,” the commission report said.
Import/export to increase
While the commission expects a GDP growth of just 0.3 percent for Denmark this year, the forecast for 2014 and 2015 is at 1.7 and 1.8 percent respectively.
The EU Commission expects a considerable rise in private consumption, as well as improvements in exports and imports.
And even though the prognosis also pointed towards more government balance deficits in the coming years – up to 2.7 percent by 2015 – the public sector received a decent evaluation and general government gross debt is expected to remain under 50 percent of the GDP.
More public sector investment
The commission believes that the government’s recent public sector investments will help kick-start the economy and hopes to see similar initiatives next year.
“Public consumption is projected to grow moderately over the forecast horizon," the report states. "The expenditure ceilings adopted by the Danish parliament in June 2013 are expected to improve the fiscal control at the central, regional and local levels.”
But it’s not just Denmark that is making economic headway. The EU Commission’s prognosis for the entire European economy is favourable.
"There are increasing signs that the European economy has reached a turning point," Olli Rehn, the commission's vice-president for economic affairs, said in a press release. The fiscal consolidation and structural reforms undertaken in Europe have created the basis for recovery. But it is too early to declare victory: unemployment remains at unacceptably high levels."
Here is the full economic EU Commission forecast for Denmark.
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