Copenhagen (Reuters) – The finance ministry said on Thursday that Denmark’s economy could grow by as much as 3.4% this year, even though the crisis in Ukraine and record-high inflation have been bad for the country. This is a big change from what they said in March.
In a government report issued on Thursday, Finance Minister Nicolai Women said, “We came out of 2021 at an incredibly high rate with a strong starting point for sustained development.”
“Although we must anticipate a decline in the Danish economy throughout this year, the level of activity will continue to remain strong,” “Women added. “
The prediction is higher than the government’s estimate from March, which said that the economy would grow by 1.6% in a medium-risk scenario. from
However, in the event that Russian gas supplies to Europe are cut off, the ministry predicts only a 2% increase in economic growth.
The government forecasts 1.9 percent growth in 2023.
The ministry anticipates inflation to climb to 5.2 percent this year in its main scenario, up from its March prediction of 4.5 percent.
In March, the Danish central bank stated that it projected the economy to rise 2.1 percent this year.