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...