Danish Economic Growth Forecast To Slow In 2012

2011-11-03 17:09:08

Denmark's economic growth is forecast to slow for the second consecutive year in 2012, the Economic Council said Thursday.

The economy is set to expand 1.1 percent next year, slower than the 1.3 percent growth estimated for 2011, the council said. The gross domestic product rose 1.7 percent in 2010.

The accumulated growth forecast for the period 2011-13 has been lowered by more than 2 percentage points, compared to the assessment in Danish Economy, spring 2011.

The public deficit is likely to rise to DKK 84.2 billion in 2012 from an estimated DKK 72.5 billion this year, the council assessed.

In an annual Banking System Outlook on Denmark, Moody's on Wednesday said the Danish banking system's outlook remains negative. It reflects sector performance that will continue to be negatively affected by the country's operating environment through sluggish economic activity, stagnating credit growth and falling property prices.