Denmark’s GDP outlook brightens with exports, gas

The Danish central bank nearly doubled its economic growth forecast for this year on Wednesday, according to Reuters.

The bank attributed the increase to robust production by pharmaceutical company Novo Nordisk and the resumption of natural gas production in the North Sea.

The bank now anticipates GDP growth of 2.4 per cent this year and 1.4 per cent next year, a significant increase from the previous forecast of 1.3 per cent for both years.

The revised growth projection is partly due to the surge in production overseas by Danish pharmaceutical firms and the recent restart of Denmark’s Tyra gas field, which had been closed for redevelopment since 2019.

Governor Christian Kettel Thomsen stated that without these two factors, the Danish economy’s growth rate would be a more modest 0.8 per cent this year.

Novo Nordisk, a producer of popular weight loss and diabetes drugs such as Wegovy and Ozempic, contributes to Denmark’s GDP through its overseas production, despite many of the jobs being located abroad.

The company’s market valuation has recently outpaced both Tesla and Visa, making it the 12th most valuable company globally.

The central bank also provided forecasts for core inflation, which excludes energy and non-processed food prices. It expects core inflation to be 2.3 per cent in 2024, 2.8 per cent in 2025, and 2.0 per cent in 2026.