The Danish economy is projected to grow by 2.8% per year in 2021 and by 2.9% in 2022. With a severe wave of infections at the turn of the year, containment measures were reintroduced, hampering economic performance in the first half of 2021. The gradual reopening of the economy from March 2021 will allow an acceleration of demand and GDP. However, unemployment will only reach pre-pandemic levels in 2022.
Stimulus measures, targeted support and the job retention scheme have kept the unemployment rate relatively low and incomes stable. Considerable fiscal stimulus in 2021 will also support the recovery and should remain until the recovery is well underway. The implementation of structural measures and investment to meet ambitious climate goals will be an important component of public spending in the coming years.