OECD:DANISH ECONOMY IS IMPRESSING
Slowing down but no massive unemployment. This will be the effect when the next oil crisis reach Denmark, expects OECD.Slowing down but no massive unemployment. This will be the effect when the next oil crisis reach Denmark, expects OECD.
Credit crisis and high energy prices are still holding the global economy in check, but Denmark and Europe seems to get off lightly. These are the findings in the recent OECD prediction, Economic Outlook.
“The Danish economy is very impressing when you take the latest years’ increase of the oil prices into consideration,” says Jens Lundsgaard, head of OECD’s Denmark-Sweden office to Berlingske Business.
He compares with the very critical consequences for Denmark in the 1970’s durig the first two oil crisis.
“To put it mildly the employment has developed much better this time,” he says and points out that today’s economic policy is aiming at keeping the inflation down. Today the challenge is to maintain the line, so that increasing oil and food prices do not boost the expentations to inflation.
OECD’s expectations to DAnish growth is on line with other recognised economists’ forecast. This year and the next Denmark will have an increrase of only 1.2 and 0.6 per cent respectively, but capacity utilization will still be high. OECD expects only a modest increase in the Danish umemployment of 0.4 pro cent points.
Other countries in Europe will experience a considerably higher economy growth, next year in particular, and as a matter of fact, this will help the Danish export.
