Real GDP growth in Denmark will continue to be
supported by a steady improvement in external demand, mainly from the eurozone.
However, the large debt burden of the private sector will restrain growth over
a multi-year horizon.
While Prime Minister Lars Lokke Rasmussen’s hardline
nationalist stance towards Europe’s migration crisis has bolstered public
support for the conservative right on Denmark’s political scene, we retain the
view that the government will remain unstable. The one-party minority
government will have a difficult time passing legislation, making it likely
that the government will be ousted before its term ends in 2019.
Major Forecast
Changes
With consumer confidence and exports weakening, we
have revised down our 2016 real GDP growth forecast to 0.9% from 1.2%.
For more information Visit at: http://mrr.cm/JdV
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