Economic Update: Danish Economy Stands on Solid Foundation

Nordea forecasts 2.1% growth for the Danish economy in 2026, supported by high activity levels and strong employment despite global energy shocks from the Middle East conflict. Consumer spending remains cautious due to high savings, while housing prices continue to climb amid low supply.

Key Takeaways

• 1.The Danish economy is forecast to grow by 2.1% in 2026, marking the third consecutive year of growth above 2%, despite global headwinds.
• 2.War in the Middle East and the blockade of the Strait of Hormuz are driving higher energy prices and supply chain delays, causing a downward revision of global growth to 3.1%.
• 3.Danish housing prices have surged, with single-family homes up 10% and condominiums up 20% since early 2024, driven by low supply and high employment.

Table of Contents

• Strong Danish starting point
• Consumer recovery remains elusive
• Lower growth in exports
• Higher inflation – but from a low level
• Low supply pushes housing prices higher
• Unchanged interest rate differential to the eurozone

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