The International Monetary Fund (IMF) has warned Denmark, a country sandwiched between prosperous nations Sweden and Germany and one with considerable natural resources like most of Scandinavia, that its economy is facing a number of risks to its growth outlook.
“Denmark has a longstanding track record of sound economic and social policies,” the IMF said in an assessment of the Danish economy published on Wednesday. “Yet output growth has been weak for an extended period.”
The IMF noted that gross domestic product (GDP) growth in Denmark has been below that of peers like Sweden and Germany for a longer time and this has continued in the aftermath of the global financial crisis.
Last week, the Danish Finance Ministry lowered its GDP growth forecasts to 1.1 percent this year and 1.7 percent next year, down from a December forecast of 1.9 percent and 2.0 percent, Reuters reported. The IMF predicted growth of 1.3 percent in 2016 and 1.6 percent in 2017, however.
Comparing Denmark with its nearest northern European neighbors, Germany, to the south, expects to grow 1.7 percent in 2016 while Sweden to the north of Denmark said last month that it expects growth of 3.8 percent this year.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.
Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.