Denmark's economy surges 3.7% in 2026, driven by pharmaceutical exports

Denmark's economy is experiencing a robust upswing, with the government now forecasting a 3.7% growth in GDP for 2026. This upward revision from the previous 2.7% projection highlights a surprisingly strong performance, especially considering external pressures like the conflicts in the Middle East and Ukraine.

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It is usually a festive day when we present the economic review. This year is also a festive day. It is enormously impressive that we are at the top of Europe.

The driving force behind this economic acceleration is the booming pharmaceutical sector, with Novo Nordisk's new weight-loss medication playing a pivotal role. The company's successful launch of this drug early in the year has significantly boosted export revenues, contributing more to growth than initially anticipated. The performance of this single company continues to have a decisive impact on the national economy.

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The more moderate growth in 2027 primarily reflects a significantly lower contribution from the pharmaceutical industry.

Looking ahead to 2027, the growth rate is expected to moderate to 1.8%. This slowdown is largely attributed to a projected decrease in contributions from the pharmaceutical industry. However, positive trends are also evident in inflation, which is forecast to remain below 2% for both 2026 and 2027, at 1.6% and 1.7% respectively. This is a decrease from the 1.9% inflation rate projected for 2025.

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In 2026, price increases are kept down by the temporary easing of the general electricity tax, which is isolatedly assessed to reduce inflation by 0.8 percentage points.

The reduction in inflation is partly due to the temporary suspension of the electricity tax, which is estimated to lower inflation by 0.8 percentage points in 2026. Furthermore, food prices have seen a notable decrease of 2.1% over the past year, following a period of significant price increases. "Price increases are kept down in 2026 by the temporary easing of the general electricity tax," the Economic Review states, adding that "at the same time, food prices have fallen by 2.1 percent over the past year."

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At the same time, food prices have fallen by 2.1 percent over the past year after some years with relatively high price increases.