Weekly economics overview
19 banknotes will become invalid on May 31, 2025. There are still 6.2 billion DKK worth of the soon-to-be-invalid banknotes in circulation. What will become invalid? The 1,000 DKK banknote and all banknotes printed before 2009.
The state will buy 59.4% shares of Copenhagen and Roskilde airports. The cost? 32 billion DKK. With the 59.4% stake, the state ownership will increase to 98%, effectively giving them full control over the airports.
The “iværksætterskat” (entrepreneur tax) has been abolished with a seven-year retroactive effect. What is the tax about? Shareholders in stock-listed companies that owned less than 10% of publicly traded shares had to pay 22% tax on the annual increase in value of these shares, regardless of whether the shares were sold. This policy particularly affected startup companies after going public, as stock prices can fluctuate significantly, leading to substantial tax bills even without actual profits from share sales.
Beware of the “teflon fever.” For over 30 years, employees at the Accoat factory in Kvistgård, Denmark, have suffered from “Teflon fever,” a condition caused by inhaling toxic fumes from heated Teflon containing PFAS chemicals, with symptoms like chills, fever, and chest tightness. Despite a 1996 report recommending safety measures such as installing oven alarms to prevent exposure, these have not been implemented, leading to continued cases among workers.
Focus
The Danish economy is doing really well. We will end the year with 3% growth, and similar growth is expected for next year. Consumers have regained purchasing power, and we are entering a stable period of real wage growth. The housing market is also growing and has increased an average of 3.8%. Note: Real wage growth means that salaries havegrown more than inflation; i.e.n, you can afford more.
- A special mention to the pharma industry driving the economy and to the 400,000 international workers in Denmark from all the economic sectors.
Other interesting mentions from the government economic report.
- Inflation is expected to stay under 2% for the next two years. At the same time, spending is still conservative as people recover from the recent inflation shock.
- Housing prices are expected to continue to grow in the next two years. 3.3% in 2025 and 3% in 2026. Good news for homeowners, not so great for first-time buyers.
- Employment in 2025 will likely cool off, which means that the same level of employment will be maintained, maybe with a weak increase of 5,000 people employed. There is no expected increase in unemployment.
- Unfortunately, the global economy does not share the same positive outlook, and that might impact Denmark in the next two years. First, the economy of our neighbors (Sweden and Germany) is not doing very well. Second, there is political instability on the global stage, which can lead to unexpected impacts on the economy.
