As a result, the deficit and the public debt will remain broadly below the threshold set by the European Stability and Growth Pact (3% and 60% of GDP respectively).
There will still be a substantial current account surplus in 2018.
All major Danish banks use the SWIFT network, as it is a rapid and efficient solution for the payment of domestic and international transactions.
Denmark has also implemented the Single Euro Payments Area (SEPA) in order to simplify bank transfers in euros.
Lively export momentum will help maintain a trade balance surplus (5.3% of GDP), even if imports will also rise, stimulated by consumption and investment.
Exports of agricultural products (pork, milk) will be the least dynamic, especially those to Asian countries and Germany.
Over USD 1.7 trillion would be needed by 2030 to implement renewable energy targets contained in NDCs.This policy has enabled export competitiveness to be maintained while supporting domestic demand.The government is expected to maintain a cautious fiscal policy, in order to prevent the economy from overheating, given the low unemployment rate.Prime Minister Lars Lokke Rasmussen has led a centre-right coalition government since 2016, made up of his party (Liberal Party), the Liberal Alliance (LA) and the Conservative People’s Party (KF).This coalition is in the minority as it brings together only 53 MPs out of 179.Improved economic conditions in the main partner countries are expected to sustain exports, while the country’s competitiveness remains satisfactory.Low inflation means the central bank can maintain its very accommodative monetary policy, in line with that of the ECB and maintain the Danish krone’s peg to the euro.Moderate inflation will help significantly increase household disposable income, also sustained by lower income taxes in 2018 as agreed by the government.Moreover, households will benefit from the wealth effect associated with property prices, as well as more flexible credit conditions thanks to deleveraging since 2014, although household debt is still the highest in the OECD (240% of disposable income).The slight increase in spending is expected to be concentrated in two areas: security, by means of higher allocations to defence, and the recruitment of more tax administration staff following a scandal in 2017 over poor tax collection.New tax measures were also announced in the Strategic Plan (2017-2025).