Research Briefing | Jan 19, 2022

Denmark’s successful virus containment strategy means Omicron will not derail growth in 2022

Ipad Frame - Denmark-Successful-virus-containment-strategy-means-Omicron-will-not-derail-growth-in-2022

We’ve lowered our 2022 Danish GDP forecast 0.1ppt to 3%, with the Omicron variant expected to slow activity in Q1. But the economy should make up the lost ground in the following quarters as the new restrictions – which have been quite benign – have already begun to be eased.

What you will learn:

  • High vaccination rates, the rollout of boosters, and extensive testing capabilities support the easing of restrictions, meaning Omicron should not significantly alter the course of growth this year.
  • We have revised up our 2022 inflation forecast to 2.3% from 1.6% owing to the persistence of supply-chain pressures in the first half of this year and still-high energy prices.
  • Labour market pressures are showing no signs of easing, as the unemployment rate fell to 2.8% in November, its lowest level since October 2008.

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