Danish Central Bank Expects Economy to Contract Next Year
- Government should present a tighter 2023 budget, bank says
- Inflation poses the biggest threat to economy, governor says
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Denmark’s central bank slashed its outlook for the Nordic nation’s economy and now sees a contraction next year as spending is dented by rising inflation and borrowing costs.
Nationalbanken expects gross domestic product to shrink 0.1% in 2023, it said on Wednesday. It sees a rebound of 1.2% the following year. That compares with the bank’s previous forecast of 2.1% growth in the next two years.