Denmark Cuts Growth Outlook
Denmark Cuts Growth Outlook

Denmark Cuts Growth Outlook

Denmark Cuts Growth Outlook

Denmark’s government cut its growth forecasts for this year and next as Scandinavia’s smallest economy struggles to cope with international headwinds exacerbated by Britain’s decision to leave the European Union.
Gross domestic product will expand 0.9% in 2016, compared with a May forecast for 1.1%, according to government documents seen by Bloomberg. GDP in 2017 will grow 1.5%, versus the 1.7% predicted just three months ago. The revised outlook is due to be published on in Copenhagen.
“Overall, the growth outlook for the international economy has been downgraded slightly following the prospect of slightly slower growth in Europe in 2017 due to Brexit,” the government said in the documents. Still, the turmoil instantly following the June referendum has eased while record-low interest rates have supported growth, the government said.
To deal with the economic slowdown, the minority government of Prime Minister Lars Loekke Rasmussen is planning to cut taxes across income brackets, according to a posting on his Facebook page released late on Monday. State broadcaster DR reported earlier that Rasmussen is planning measures that will increase employment by almost 250,000 people and release 65 billion kroner ($9.8 billion) in funds targeting growth through 2025.
Meanwhile, the government is cutting its forecast for how much it will borrow, and predicts a domestic financing need for next year of just 94 billion kroner ($14 billion), which is about 28% lower than 2016’s requirement.
“The reduced borrowing need can mean that the national debt office will lower the target for Danish government bond issuance in 2017,” Jan Stoerup Nielsen, a senior analyst at Nordea Markets, wrote in a note. The issuance target for 2016 is unlikely to change, he said.
Danish consumer confidence in the job market and the economy was the highest in Europe for the second quarter of 2016, according to a survey by Nielsen. The survey comprised 30,000 respondents from more than 60 countries, answering questions about jobs, economy, and future outlooks on private consumption.
The report shows that consumer confidence improved across all the Nordic countries in comparison with the first quarter. Denmark’s score increased seven points to 112, Sweden and Norway each recorded a four-point rises to 90 and 82 respectively, and Finland’s score increased by one point to 64.

Short URL : http://goo.gl/0mNyoV
  1. http://goo.gl/rvgzN5
  • http://goo.gl/gZSkmD
  • http://goo.gl/7mofNm
  • http://goo.gl/sRXo5a
  • http://goo.gl/fzY36a

You can also read ...

China Challenges US Solar Panel Duties
China says it is challenging a US tariff hike on solar panels...
In a retaliatory move, President Recep Tayyip Erdogan’s government on Wednesday announced higher tariffs on some US imports, namely on passenger cars (120%) and leaf tobacco (60%).
Turkey has raised tariffs on some US imports, including...
File picture of Kim Jong-un (L) and Moon Jae-in at the truce village  of Panmunjom, South Korea.
South Korea President Moon Jae-in on Wednesday offered a bold...
World trade volume growth peaked in January at almost 5.7% year-on-year but nearly halved to less than 3% by May.
Cyclical indicators point to slower and more uneven growth in...
Nigeria CPI Drops to 11.14 Percent
Nigeria’s National Bureau of Statistics says the consumer...
Surging Inflation Mars Philippines Growth
The Philippine economy in 2018 is a story that can be summed...
Moody’s Predicts Slower Fiscal Progress in S. Africa
South Africa’s fiscal consolidation will be slower than the...
Sudanese Hit by Bread Shortages
Bread shortages have hit Sudan, with wheat traders blaming a...