International uncertainty threatens Danish recovery

Danish economic policy institute and think-tank The Economic Council of the Labour Movement (Arbejderbevægelsens Erhvervsråd) published a report on how the increased international uncertainty will affect Denmark. Should international economic growth slow down by a percent this year and in 2012, Denmark stands to lose 40 000 jobs and 30 billion kroner of prosperity compared to OECD’s current prognosis says the policy institute.

The agency feels Denmark’s problem is with growth, not with debt and warns against merely focusing on debt relief. Exports have thus far kept the economy growing. OECD is currently predicting growth of 1.8% for 2011 and 2.1% for 2012 in Denmark. In the risk scenario, those numbers would also be cut by around a percent. Currently the most pessimistic prognosis calls for 0.8% 2011 growth. The analysis is available here (in Danish).