Arbejdernes Landsbank (Workers’ Bank) has released its economic forecast, predicting growth of 2.4 percent this year and 2.1 percent next year, despite significant uncertainty surrounding the global economic outlook. Chief Economist Jeppe Juul Borre acknowledges the volatility and potential for rapid changes in the economic landscape.

The forecast was adjusted following a downgrade in growth figures for the fourth quarter of the previous year by Statistics Denmark, which also calculated a 0.5 percent economic decline in Denmark for the first quarter of this year. This revision impacted the growth estimate for 2026, which has now increased due to the altered basis for comparison.

In addition to economic expansion, the forecast anticipates an increase in employment, with 33,000 new jobs expected this year and 30,000 next year. Inflation is projected to remain stable, and house prices are expected to continue their upward trend.

The bank notes that tariff announcements have had a negative impact on the forecast, although not as severe as initially anticipated. The primary concern is the potential impact on major European export markets, which could indirectly affect the Danish economy. However, the lower interest rate level is seen as a positive factor for economic growth.