25-09-2024In recent years and into 2024, the Danish economy has been characterized by a dichotomy, where domestic demand has declined, while exports have been strong, driven by the pharmaceutical industry. Demand has been held back by a period of high inflation and interest rate increases, but inflation has declined and interest rates are slowly coming down again. Households' and companies' expectations have also become more positive in line with falling inflation. This provides the basis for other parts of business activity than the pharmaceutical industry to a greater extent contributing to progress in the economy.
With the fall in inflation and the implementation of agreed wage increases, many households have experienced a significant increase in real wages since the start of 2023. This is expected to lead to increased consumption this year and next year. On the housing market, there is a prospect of an increase in prices, as housing demand is helped along by lower interest rates. Increasing growth abroad, including in the euro area, continues to strengthen export opportunities. However, the same progress in exports cannot be expected as in recent years, when the export of pharmaceutical products has increased particularly strongly.