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War in Ukraine to impact Denmark’s economy

Christian Wenande
March 16th, 2022


This article is more than 2 years old.

National Bank expects that the conflict will lead to a stagnated growth in 2022 compared to previous predictions made last year

GDP growth expected to dwindle in coming years (photo: Pixabay)

According to Denmark’s central bank, Nationalbanken, the ongoing war in Ukraine will negatively impact the Danish economy this year.

In a report published today, the bank predicts GDP growth of 2.1 percent for 2022, which is 1.0 percentage points lower than the 3.1 percent it predicted for the year in September 2021.

“The war in Ukraine has in a short time become a new and destabilising factor in the Danish and global economy. It dampens growth and increases inflation at a time when inflation and capacity utilisation is already high,” wrote Nationalbanken.

“The Danish economy is generally robust and able to handle new challenges, and it is expected to enter a pause in growth. However, there are risks of a fall in activity.”

READ ALSO: Denmark’s economy has outperformed everyone

Down again in 2024
The bank points to higher price increases as well as instability hitting consumers and investment in Denmark and globally. 

Furthermore, the conflict is also expected to increase inflation by about 2 percentage points in 2022.

The bank estimates that expected GDP growth will remain at about 2.1 percent in 2023 and further dwindle to 1.7 percent in 2024. 

The Danish economy has been in riveting form as of late, in spite of the Corona Crisis. 

In 2021, the Danish GDP grew by 4.1 percent – the biggest increase since 1994. 


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”