Denmark lifts economic growth forecast due to strong pharma exports, ET HealthWorld

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Copenhagen: Denmark sees its economy expanding faster than it previously expected in 2023, mainly thanks to growth in the pharmaceutical industry led by drugmaker Novo Nordisk and its popular weight-loss drug Wegovy, and due to high employment.

Elsewhere in the economy, the picture was rather bleaker, however.

“Parts of the economy have already slowed down, and there is a decline in industry when excluding the pharmaceutical industry,” Economy Minister Jacob Ellemann-Jensen said.

Overall, the government now expects gross domestic product to grow by 1.2 per cent this year compared with its May forecast of 0.6 per cent, the economy ministry said in a report.

Drugmaker Novo Nordisk has seen huge growth with the success of its weight-loss drug Wegovy, which has been flying off store shelves worldwide.

“The pharmaceutical industry, led by Novo Nordisk, has maintained a high production level in the first half of 2023 with June as a new peak,” the report said.

But there are still many uncertainties regarding the broader economic outlook, Ellemann-Jensen said in the report.

“Many of our neighbouring countries are currently experiencing stagnation or even regression. The Danish economy is also not avoiding a period of a slower growth pace,” he said.

The government still expects Denmark’s GDP for 2024 to grow by 1.4 per cent as projected in May.

Inflation in the Nordic country has declined greatly since it reached a 40-year high of 7.7 per cent last year. The government now forecasts inflation at 3.8 per cent this year compared with its May forecast of 4.3 per cent.

Employment is forecast to grow by 32,000 people against 1,000 expected in May, it said.

  • Published On Sep 1, 2023 at 12:44 PM IST

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