Denmark | Successful virus containment strategy means Omicron will not derail growth in 2022

We’ve lowered our 2022 Danish GDP forecast 0.1ppt to 3%, with the Omicron variant expected to slow activity in Q1. But the economy should make up the lost ground in the following quarters as the new restrictions – which have been quite benign – have already begun to be eased.

What you will learn:

High vaccination rates, the rollout of boosters, and extensive testing capabilities support the easing of restrictions, meaning Omicron should not significantly alter the course of growth this year.
We have revised up our 2022 inflation forecast to 2.3% from 1.6% owing to the persistence of supply-chain pressures in the first half of this year and still-high energy prices.
Labour market pressures are showing no signs of easing, as the unemployment rate fell to 2.8% in November, its lowest level since October 2008.

Topics: Europe, Inflation, Labour markets, Coronavirus, GDP, Unemployment, Consumer, Employment, Recovery, Coronavirus vaccine, Growth, Nordic, Pandemic, Denmark, Country Insight, Vaccines, Country Economic Forecast, Covid19, Supply chain, Supply and demand, Omicron