Bright prospects

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The economy has continued to recover in 2004 due to a strong pick-up in private consumption and exports. Prospects look bright for 2005 and 2006, as business investment should add to activity on top of continued solid household spending and fast-growing export demand.
The labour market is gradually improving, but inflationary pressures are likely to remain contained until 2006 when slack in labour and product markets is expected to disappear.The outlook is very much shaped by the 2004 fiscal easing, which provided a large boost to household disposable income. Monetary policy settings are currently supportive of growth, but will become less so by 2006, as the European Central Bank gradually raises interest rates and Denmark (which is not in the euro area) follows suit. Further initiatives to increase labour force participation would help to sustain the upturn and bring employment closer to the government’s mediumterm target.
Population (000s), 20035 387
Area (000 sq km)43
GDP (Billion USD), 2003212.3
Life expectancy at birth (Women, Men), 2002 79.5, 74.8
Total labour force (000s), 20032 850
Government typeConstitutional Monarchy
Indicators% change unless otherwise indicated
GDP growth2.42.72.6
Household savings ratio-0.3-1.6-1.3
Consumer price index1.21.72.0
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance (% GDP)
Current account balance (% GDP)
Source: OECD© OECD Observer No 245, November 2004

Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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