World Economic outlook - Denmark Economic growth forecast 2013, interest rates forecast 2013, economic conditions 2013, Denmark budget projection 2013 : Denmark's government raised its forecast on Sunday for public sector deficits for this year and next, quashing hopes that 2013 could see the country shift to a surplus.
Documents obtained by Reuters a day ahead of the official release of the budget also showed the government cut its economic growth forecast for this year, citing tough economic conditions, though it saw an improved outlook for 2013.
Some economists had estimated the country could return to a surplus in 2013, seven years earlier than the government had projected, thanks to tax revenues on accumulated pension wealth.
But Finance Minister Bjarne Corydon on Friday warned that a surplus was probably out of reach next year.
The government said in the documents on Sunday that the global economy was not improving as fast as it had expected.
For 2013, the government saw a deficit of 1.9 percent of gross domestic product (GDP), down from this year's estimated 4.0 percent but up from a May estimate of 1.7 percent. The previous estimate for 2012 was 3.8 percent.
The figures came before the government's 2013 budget proposal which is due to be released on Monday.
The government trimmed its GDP growth forecast for this year to 0.9 percent, from 1.1 percent given in May, and raised its 2013 projection to 1.7 percent, from a previous 1.5 percent.
The budget projection saw the deficit falling to 36.5 billion crowns (3.8 billion pounds) in 2013 from an estimated 73.4 billion this year, exceeding earlier forecasts for a deficit of 32.6 billion in 2013 and a 70.4 billion deficit this year.
Denmark is slowly recovering from its deepest economic crisis since World War Two, but remains the weakest-performing economy in the Nordic region, held back by sluggish private consumption after a property bubble burst.
Despite the weakness of the economy, Denmark has a record current account surplus this year and the Danish crown has been fuelled by wary investors seeking safer havens in non-euro assets, including Danish government and mortgage bonds.
The central bank, which keeps the crown steady within a narrow band against the euro, has used interest rate cuts and intervened in the currency markets to keep the crown down.
Last month, the central bank cut interest rates by a quarter point, putting one of its secondary rates below zero for the first time, to match a similar move by the ECB and to curb strength in the Danish currency.
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