Denmark's economy continues to show strong growth, driven largely by pharmaceutical exports. However, domestic demand remains relatively weak. The International Monetary Fund (IMF) staff anticipates a moderation in output growth as external demand is expected to weaken.
The IMF mission concluded that the direct impacts of U.S. tariffs on Denmark will likely be limited. Nevertheless, increased trade tensions and policy uncertainty present risks to the economic outlook. Denmark's robust institutions, competitive and diversified economic structure, strong fiscal position, and educated workforce provide resilience against external shocks.
The IMF outlined several policy priorities for Denmark: maintaining fiscal sustainability amidst rising defense and aging-related expenditures, safeguarding financial stability, and pursuing structural reforms.
The mission expressed gratitude towards Danish authorities and private sector counterparts for their flexibility and warm hospitality during discussions. Special thanks were extended to Danmarks Nationalbank for assistance with meeting arrangements.