Weekly economics overview
At the end of 2026, your home will be 10% more valuable than today. This is good news for homeowners. Why? Properties can regain the value lost after the 2022 meltdown of the housing market, when homes lost on average 6.5% in value.
- At the same time, this is not great news for first-time buyers. While many wait for interest rates to drop, housing prices are rising.
69% of people in Denmark would like to retire gradually. People today can retire at 67 years old. However, most of them would like to keep working in a reduced capacity. Interest organizations representing elderly people are asking for a national strategy to provide this possibility.
One in three shops does not respect the age limit rules regarding alcohol and nicotine sales. Undercover young buyers (15 to 17 years old) have caught 282 stores red-handed out of 838 stores visited. Age limit sales violations can result in fines of up to 25,000 DKK.
Solar farmers are coming! According to several farmers, solar fields are more profitable than grain fields. It’s no wonder that farmers have started to lease or sell land to solar plants around the country. Solar plant companies are willing to pay 500,000 DKK per hectare, which is double or triple their agricultural value.
Several European farming and nature organizations are calling on Denmark to stop exporting illegal pesticides to countries outside the European Union. Pesticides containing “dimethoate” became illegal in the European Union in 2013 because they attack the human nervous system. Nevertheless, Denmark exports the banned spray to three countries (Bolivia, Pakistan, and Ethiopia).
Focus
State of economy as presented by Denmark’s National Bank
- 2.1% GDP (economic growth) in 2024, followed by a 2.3% predicted growth in 2025.
- Housing prices will increase by 3.3% this year, followed by a predicted 3.2% increase in 2025.
- An average house of 140 square meters should get 150,000 DKK more expensive in the next two years.
- According to the bank president, “things are going quite well in the Danish economy.”
- Inflation is expected to remain at a stable 2% in the following years.
- Wages are still rising faster than expected; however, the national bank expects wage growth to slow in the coming years.
- Employment is expected to continue rising, but at a slower pace.
