Denmark: Labour shortages

GDP has expanded strongly during 2006 and is now well above potential. With a continuing housing boom and strong external demand, labour shortages have become very clear. Domestic firms are losing market share, and wages have started to accelerate, in particular in the construction sector.

Although short-term interest rates are rising, monetary conditions are still too stimulative, making more critical the need to avoid fiscal slippages in 2007. Efforts to expand labour supply should continue, and measures to cool down aggregate demand should be ready in case wages and prices start overheating.

Population (000s), 20055 416
Area (000 sq km)43
CurrencyKrone
GDP (Billion USD), 2005186.3
Life expectancy at birth (Women, Men), 2004 79.9, 75.2
Total labour force (000s), 20052 876
Government typeConstitutional Monarchy

Indicators% change unless otherwise indicated
200620072008
GDP growth3.52.61.6
Household savings ratio-2.2-1.1-0.9
Consumer price index2.02.12.6
Unemployment rate (%)3.83.33.3
General government financial balance
(% GDP)
3.43.23.2
Current account balance (% GDP)1.31.81.3

Source: OECD

©OECD Observer No. 258/259, December 2006




Economic data

GDP growth: +0.3% Q3 2019
Consumer price inflation: 1.8 % Nov 2019 annual
Trade (G20): -0.7% exp, -0.9% imp, Q3 2019
Unemployment: 5.1% November 2019
Last update: 15 January 2020

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