Denmark expects slower growth over next 2 years due to Mideast tensions

COPENHAGEN

Denmark’s Economic Affairs Ministry expects economic growth to slow over the next two years, according to a new forecast released on May 23.

The ministry projects gross domestic product (GDP) growth of 2.7 percent in 2026, before easing to 1.6 percent in 2027, reflecting a weaker economic outlook and growing external uncertainties, public broadcaster DR reported.

Officials said a slowdown in growth is expected to become apparent during the current year, citing the “escalating situation in the Middle East” as a key factor behind rising energy prices and increased volatility in financial markets.

The ministry also pointed to mounting competition in the weight-loss drug market, saying it expects the pharmaceutical sector to make a smaller contribution to economic growth than in recent years.

Denmark’s economy has benefited significantly from strong pharmaceutical exports, particularly driven by demand for obesity treatments.

Regional tensions have remained high since the US and Israel launched strikes against Iran in February, prompting retaliatory attacks by Tehran against Israel and U.S. allies in the Gulf, along with the closure of the Strait of Hormuz.