The Danish economy is currently robust with high employment expected to continue through 2026, despite significant uncertainties in the international economic landscape. This is according to the spring report from the Danish Economic Councils’ chairmanship.

The report highlights that while Denmark is experiencing a moderate economic boom, there are considerable international risks that could negatively impact employment. These risks include potential trade conflicts arising from the United States’ threats of increased tariffs.

Despite these risks, Danish economic growth is projected to be three percent.

The council of economic advisors suggests that current fiscal policy is too lenient for stabilizing the economy, as it accommodates increased spending on defense and climate initiatives.

The chairmanship notes that there are no current signs of imbalances in the housing or labor markets, nor is there evidence of excessive optimism among consumers. However, they caution that the planned fiscal policy increases the risk of such imbalances occurring in the future.

Looking ahead, the chairmanship estimates an economic leeway of DKK 64 billion towards 2030, representing the state’s expected surplus if economic forecasts hold true. However, the size of this leeway is contested, and the government anticipates a “significant upward adjustment” in late June.

The chief economic advisor stresses the importance of caution when allocating these funds, given the uncertainty surrounding the leeway calculation. He advises against spending the entire surplus, as it may prove to be smaller than anticipated.

Finally, the report notes that while mergers between companies have generally improved efficiency and lowered prices, some mergers have resulted in increased prices and costs.