Denmark | Vaccination has limited the Delta variant to a downside risk

The flash release estimates that GDP expanded 2.2% in Q2, slightly better than our 2.1% estimate, pushing the Danish economy above its pre-pandemic level. We have therefore raised our 2021 GDP growth forecast by 0.1ppt to 3.2%, which will be followed by 3.4% expansion in 2022.

What you will learn:

• Growth this summer should be supported by a partial rotation back into spending on services and buoyant retail activity as consumers continue to unwind excess savings accumulated during the pandemic.
• The Delta variant remains the key downside risk. But Covid cases remain contained so far
• Goods inflation remains elevated, but services inflation fell back.
• Our forecasts up to 2024 for all of the key economic indicators including GDP, Consumer demand, exports of goods and services, Domestic demand