Economic Survey, December 2006 - English Summary

06-12-2006

Reaching an annualized growth rate of 3.5 per cent in the first half of 2006, GDP growth in Denmark has turned out considerably stronger than expected in the August survey.

Reaching an annualized growth rate of 3.5 per cent in the first half of 2006, GDP growth in Denmark has turned out considerably stronger than expected in the August survey.

Growth has been broad based, with private consumption, investment and exports exceeding expectations. Strong domestic demand has brought higher employment, but also a sharp rise in imports, due to capacity constraints and a tightening labour market. Due to supply side constraints, rising interest rates, a cooling housing market and slightly weaker export demand, the economy is expected to slow down during the forecast period. Unemployment will level off at around 4 per cent. Inflation is expected to hold steady at around 2 per cent during the forecast period.

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