It is increasingly clear that the war in Ukraine and its consequences entail great costs for the global economy. The international economic consequences are becoming increasingly more widespread, and the recovery has lost momentum in many countries after rapid growth in the wake of the pandemic. Inflation has continued to increase across countries, and expectations for economic growth
have generally become more subdued.
In Denmark, there are also signs of a slowdown in economic growth, but activity remains at a high level. Employment has continued to rise in recent months, and there are significant capacity pressures in the labour market. The increase in employment underscores the fact that the Danish economy has emerged quite well from the corona pandemic, and the high level of employment means that the Danish economy has good prerequisites to withstand a period of more limited growth. At the same time, good competitiveness for businesses, continued productivity growth and large savings by households provide a relatively robust basis, such that the growth pause may be temporary. However, the large price increases pose a challenge for many households.