This Selected Issues paper analyzes wage and inflation dynamics in Denmark. High profit margins contributed to growth in the gross domestic product deflator. Historical evidence suggests that the contribution from wages to price deflators will likely pick up. Nominal wage growth in Denmark has...

The 2023 Article IV Consultation discusses that the Danish economy recovered strongly from the pandemic. Economic activity is set to soften in the first half of 2023, followed by a gradual recovery. Denmark's recovery from the pandemic was impressive, but strong output and employment growth has...

The global financial crisis hit Denmark hard, and the recovery has been slow and unsteady. Denmark’s slow growth predates the recent economic crisis, and the economy has underperformed its regional peers. The current account remains in surplus, largely reflecting weak domestic demand since the...