Weekly economics overview
1.1% inflation rate in July: A significant decrease compared to June, when the inflation rate hovered around 1.8%. With low inflation and the highest wage increases on the labor market in 35 years, the purchasing power of the average worker has largely been restored.
For the first time since March 2021, inflation in the United States fell under 3%. As a domino effect, the United States Central Bank should lower the interest rate, which will make the European Central Bank lower the interest rate and, finally, the Danish National Bank. Good news for people with loans, but not so good for people with money.
The National Research Center for the Working Environment published a report that shows how long people are able to work, depending on their profession. Journalists, engineers, and architects are expected to be able to work until the age of 70, while those working in kitchens, cleaning, or childcare are expected to retire at 63.
Find out when you can retire by using this calculator.
The idea to freeze the retirement age at 70 years old from 2040 onwards will be very expensive for Danish society. 42 billion DKK per year, to be more precise. Why? Higher life expectancy, more elderly people in relation to working people, and fewer children.
Uber is coming back to Denmark. From 2025, you will be able to use the Uber app in Copenhagen. However, unlike the usual model, it will be a local taxi company called Drivr that sends a car. Also, the price will be the same as for other taxis.
Focus
The airline SAS has been delisted from the stock exchange: The value of one SAS share is zero. 56,528 shareholders from Denmark and many others from around the world have lost their investments in the company. The shareholders have been informed since October 2023 that the company would be delisted and the share value would drop to zero; however, many wanted to continue until the end. The company lost 99.94% of its value in the last couple of years. The biggest loss has been for the largest shareholders (the Danish and Swedish states), which owned 21.8% each.
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Moving forward, SAS will continue as a new company owned by the American investment company Castlelake, the Danish state, the Franco-Dutch airline Air France-KLM, and the Danish investment company Lind Invest.
The pharma company Bavarian Nordic shares are becoming very valuable as we approach a global epidemic of mpox. As the only company in the world with a vaccine developed, their value can rise meteorically. Vaccine orders from HERA (European Health Emergency Preparedness and Response Authority) and Africa CDC have been made.
Prices for houses, apartments, and holiday homes have risen for six months in a row. 3.8% on average, to be more precise. Great news for owners, bad news for first-time buyers. An average-sized house (140 m2) is worth 89,000 DKK more in 2024 (so far). This means that an investment in real estate has better returns than savings accounts.
