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 2018 Article IV Consultation highlights continued solid growth in the Danish economy. The output gap has seemingly closed for the first time since the global financial crisis. Unemployment is low and close to its estimated structural level, with signs of labor shortages and capacity constraints in some sectors. Inflation remains subdued. Property prices in urban areas are rising swiftly, and household debt remains elevated despite recent deleveraging. The increasingly binding constraints highlight Denmark's reduced growth potential, reflecting structurally weak productivity growth and the postcrisis investment slowdown. The outlook is for continued robust growth, which is projected to exceed its trend in the near term, reaching 2.0 percent in 2018 and 1.9 percent in 2019.