Danish Stimulus May Fail to Stem ‘Long, Painful’ Adjustment

The Danish government’s efforts to end the country’s recession may fail to bring about the recovery needed to create jobs as global market turmoil renders domestic measures futile, economists said.

The government’s proposals, presented yesterday, are “quite uncertain and may prove to be a waste of money in light of the global economic crisis,” Jes Asmussen, chief economist at Svenska Handelsbanken AB in Copenhagen, said in a note. “We need to accept that we’re headed for a long and perhaps painful adjustment in the Danish economy and it will be hard to find any potential for any economic growth worth noting.”