The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This 1999 Article IV Consultation highlights that the Danish economy continued to perform well in 1997-98. Real GDP growth of about 3 percent remained above potential and unemployment fell to 6 percent, less than half its level only five years earlier. Consumer price inflation remained subdued at slightly below 2 percent. However, capacity constraints became more evident and the external current account balance showed a deficit-for the first time since 1989-of 1.4 percent of GDP. Also, at 41/2 percent, wage inflation remained higher than in the main trading partner countries.