Denmark's economy expected to grow 1.9% in 2024, 1.6% in 2025: IMF

​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) - Denmark's economy is expected to grow 1.9% this year and 1.6% next year, the International Monetary Fund (IMF) said Friday.

The economy is forecast to expand 1.6% in 2025, while it grew 2.5% last year, the IMF said in its Staff Concluding Statement of the 2024 Article IV Mission.

"The growth of pharmaceutical and maritime exports will taper off, while that of the rest of the economy will be bolstered by a pickup in external demand, improved consumer purchasing power, and further easing of financial conditions," it said. "The balance of risks to growth is skewed to the downside, with primary downside risks including a global slowdown, the possible escalation of the conflict in Gaza and Israel and Russia’s war in Ukraine, and deepening geoeconomic fragmentation.”

While inflation averaged 3.4% last year, it is estimated to average 1.8% in 2024 and 2.2% in 2025, according to the figures.

The IMF said inflationary pressures have largely dissipated in recent months with a decline in global energy prices and lackluster domestic demand.

"Inflation might temporarily edge up in the coming months due to the lagged effect of last year’s wage collective bargaining agreement before stabilizing at around 2 percent during the second half of 2025," it added.