The corona crisis has sent Denmark’s economy into the biggest downturn in more than ten years.
Denmark’s economy shrank by 3.7 per cent in 2020. Figures from Statistics Denmark show this.
This is the largest setback for the Danish economy since the financial crisis in 2009, when the economy shrank by 4.9 percent.
This is an indicator of development. Statistics Denmark emphasizes that there is greater uncertainty than usual with the figure.
There is an ongoing adjustment of the GDP figure, as more data comes in.
It has been seen before that several years later changes are made to GDP backwards.
Although the downturn is the largest in years, it has not gone as badly as many economists and experts expected at the start of the corona eruption.
Among other things, the International Monetary Fund (IMF) forecast a decline of 6.5 percent in the spring, while the government predicted a decline of 5.3 percent.
Sharp decline in 2020
According to Las Olsen, chief economist at Danske Bank, it did not get any worse because the economy picked up when society reopened last summer.
“Consumption and activity increased rapidly again when it was opened up, and that is something completely different from what you see in a normal economic crisis, such as the financial crisis.”
“It’s also because we in Denmark have been better at keeping the industries running that were not closed down than we have seen in Southern Europe or the UK, and that companies and consumers have gone to great lengths to make things work – also with shutdown, ”he says in a comment.
This is also due to the fact that we in Denmark have been better at keeping the industries running that were not closed down than has been seen in Southern Europe or the United Kingdom.
Las Olsen, chief economist
However, he stresses that there is a sharp decline in 2020.
Danske Bank estimates that the total bill from the corona crisis could be calculated at around DKK 300 billion. This corresponds to approximately NOK 50,000 per Dane.
“It’s a loss that hits us through smaller profits, lower wage increases and a big bill for the public sector, which may not need to be paid right now, but which is still money we could have used for something else,” says Las. Olsen.
Source: Politiken.dk – Forsiden by politiken.dk.
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