Media: Danish economy shrinks 5.3 percent

Coronakrisen're going to hit the Danish economy hard in 2020.

the Economy in Denmark and a decline of 5.3% in the year due to the decommissioning of the society. It shows the Economic survey, the finance minister, Nicolai Wammen (S) will present on Tuesday at 12 o'clock.

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- It is a quite significant decline, and it surpasses in fact, the biggest drop we saw during the financial crisis in 2009, " says chief economist of the bourgeois-liberal think-tank Cepos Mads Lundby Hansen to Ritzau.

the Unemployment rate will rise, and housing prices will fall, shows the statement in addition, according to media reports.

In april, the ministry of Finance with a forecast for the Danish economy. It contained three scenarios. These featured væksttab of between three and six percent.

According to the statement expects the government however, a plus of four percent on growth in gross domestic product (gdp) next year.

the Crisis comes to sit in the Danish economy in a few years, but in the course of 2022, we must consider that we are out of it from the forecasts, there is now, says Mads Lundby Hansen.

In the statement, it becomes estimated that the public finances in the year at minus 7.2 percent. It corresponds to a hole in the Danish treasury of approximately 170 billion dollars.

Denmark is, according to Mads Lundby Hansen is a beneficiary of that in recent years has been made a number of reforms in, among other things, early retirement and unemployment benefits.

- this is The largest deficit since the beginning of the 1980s. But here we hear the comparison also up for the public finances are extremely healthy.

By the end of 2019 had the public a net worth of 143 million dollars, he says.

Already on Monday announced the ministry of Finance, the Danish state has a need for a big milliardindsprøjtning to have the money to pay the stimulus packages adopted during the coronakrisen to save hard-pressed businesses.

Overall, the Danish state use of 294 billion dollars in funding this year. It is 207 billion dollars more than was estimated at the end of 2019, where coronapandemien had not hit the world.

- the Need for additional funding due to special hjælpepakkerne in connection with the coronaepidemien, but also among other things, anticipated lower tax revenues due to the economic situation, wrote to the ministry of Finance on Monday.

Hjælpepakkerne stands to expire at 8. July. They provide among other things, compensation for salary paid to former employees and corporate overhead expenses.

At the confederation of Danish Industry (DI) are you afraid that the crisis may prove to be even greater than the ministry of Finance has figured out.

- It is closed to access to our export markets, and the demand decreases dramatically, which hits Danish companies extremely hard, says vice president of DI Morten Granzau.

- We estimate a total decline in export sales of 170 billion dollars in the year.

- There is a need for a strong political commitment to supporting Danish exports, their competitivenes and the nearly 850,000 jobs dependent on it, he says.