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Denmark: 2025 Article IV Consultation-Press Release; and Staff Report

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  • International Monetary Fund

Abstract

Strong growth has continued, primarily driven by the expansion of pharmaceutical exports, while domestic demand has been relatively sluggish. Inflation has remained below 2 percent. Public finances and external positions are robust, and the financial system has demonstrated resilience to multiple shocks in recent years. Staff expects growth to moderate in the near term as external demand weakens, and the exceptional pharmaceutical expansion begins to normalize. While direct impacts from U.S. tariffs are expected to be limited, the escalated global trade tensions pose risks to the outlook. In response to increasing geopolitical tensions, early in 2025, the government announced a substantial increase in defense spending.

Suggested Citation

  • International Monetary Fund, 2025. "Denmark: 2025 Article IV Consultation-Press Release; and Staff Report," IMF Staff Country Reports 2025/165, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/165
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