Saturday, January 21, 2012

Denmark economic growth outlook 2012-2013

World Economic outlook - Denmark economic growth outlook 2012-2013 : Good economic news was a rare find in the final months of 2011. Nevertheless, there were a few bright spots in Denmark’s economic outlook as we turned the page on the new year. the world’s top three credit rating agencies – gave Denmark a shiny present: a renewed AAA credit rating.
Moody’s praised Denmark for trimming back its early-retirement programme (efterløn) and raising the retirement age in a bill that was passed on December 21.Speaking of interest, foreign investors continued to turn in large numbers to Denmark as a safe spot to park their money while the Eurozone countries ride out the euro storm.

The German version of the Financial Times marveled that Denmark’s central bank is currently reaping a “premium” to hold investors’ capital – writing that stable Denmark is perceived as a safe haven in the financial storm. While Italy, near the centre of the maelstrom, was selling government bonds at nearly seven percent interest last month, Danish bonds were selling briskly at just 0.03 percent interest, or even at negative interest rates, meaning that investors are, in effect, paying Denmark to safeguard their cash.

In light of the record-low interest rate – and with no expectation of a reversal soon – financial analysts were predicting that Danish consumers may soon see 30-year fixed-rate home mortgages with interest rates as low as three percent.

Denmark exited its worst recession in six decades last year after a 55 billion kroner ($9.5 billion) stimulus program that included income tax cuts.

Gross domestic product expanded 0.7 percent in the third quarter from the three months through June and 3 percent from a year earlier, Statistics Denmark said on Nov. 30. The economy probably will grow 2 percent this year and 1.9 percent in 2011 and 2012, the central bank said on Dec. 9.
Denmark inflation rate outlook 2012-2013
Denmark’s inflation rate rose in December to the highest since October 2008 on higher fuel, food and tobacco prices.

Annual inflation was 2.8 percent compared with 2.6 percent in November, Copenhagen-based Statistics Denmark said today on its website. The median estimate in a Bloomberg survey of six economists was 2.9 percent. Prices rose 0.1 percent in the month.

“Inflation at nearly 3 percent must be seen as a little high,” said Niels Roenholt, senior economist at Jyske Bank A/S. “With salary increases at only 2 percent in the private sector, real wages have been falling for many Danes through 2010. It doesn’t help the economy, as private spending hasn’t really kicked into full gear yet after the downturn.”

Inflation Denmark 2011
The inflation chart and table below feature an overview of the Danish inflation in 2011: CPI Denmark 2011. The inflation rate is based upon the consumer price index (CPI). The CPI inflation rates in the table are presented both on a monthly basis (compared to the month before) as well as on a yearly basis (compared to the same month the year before).

source
http://www.bloomberg.com
http://www.inflation.eu

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