Denmark: 2016 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Denmark
IMF Staff Country Reports, June 27, 2016
Source details
- Canonical URL
- Denmark: 2016 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Denmark
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Bibliographic details
- Published: June 27, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475533460.002
Executive summary
- Denmark has a longstanding track record of sound economic and social policies, but economic performance has been relatively weak for an extended period.
- The economy continues to grow slowly: recorded growth was 1.3 percent in 2014 and 1.2 percent in 2015.
- Growth in 2015 was driven mostly by private consumption supported by rising employment and real incomes.
- Relatively strong performance in the first half of 2015 was partly undone by flagging exports in the second half of the year.
- Denmark has consistently run current account surpluses in recent decades, largely reflecting structurally high retirement savings within its funded pension system.
Key findings and indicators
- Real GDP growth:
- 2014: 1.3 percent
- 2015: 1.2 percent
- Main domestic driver of 2015 growth: private consumption (on the back of rising employment and real incomes).
- External sector: export weakness in the second half of 2015 reduced earlier gains.
- External balance: persistent current account surpluses over recent decades attributable mainly to structurally high retirement savings in the funded pension system.
Analysis of drivers
- Domestic demand:
- Private consumption was the principal proximate source of growth in 2015.
- Employment and real income increases supported household spending.
- External demand:
- Exports weakened in the second half of 2015, offsetting part of the earlier-year momentum.
- Structural factors:
- Funded pension system contributes to structurally high retirement savings, underpinning recurring current account surpluses.
Topics covered
- Banking
- Central bank policy rate
- Financial services
- Housing prices
- Income
- Income inequality
- Inflation
- Labor
- National accounts
- Prices
Keywords highlighted
- Central bank policy rate
- CR
- data
- Denmark
- employment growth
- Global
- government finance statistics data
- Housing prices
- Income
- Income inequality
- ISCR
- labor market condition
- liability positions vis-à-vis nonresident
- money market rate
- rate
- trade balance
International Monetary Fund — Denmark: 2016 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Denmark