Denmark’s economy remains resilient despite higher tariffs and recent global volatility, with the government projecting steady growth and rising household purchasing power through 2027.
In its latest Economic Review released Thursday, the Ministry of Economic Affairs forecast gross domestic product to expand by 2.6 percent in 2025, 2.2 percent in 2026 and 1.6 percent in 2027, describing the outlook as a “moderate boom.” By comparison, the European Commission projects EU GDP growth of 1.4 percent in 2025, underscoring Denmark’s stronger trajectory.
Employment is expected to keep rising, inflation has remained low and stable, and real incomes are improving, the ministry said. It noted the economy had “stood firm” through earlier turbulence in global markets.
“It is no coincidence that the Danish economy is strong,” Economic Affairs Minister Stephanie Lose said, crediting timely reforms that laid the foundation for resilience and job creation. She highlighted employment among older workers as a priority.
Still, consumer confidence remains subdued, with households reporting supermarket prices as high. Employment grew by 38,000 in 2025 and is forecast to rise by 13,000 in 2026 and 7,000 in 2027.