Danish Economy – Week 7 2025

Our money

🛠️ 230,000 industry workers get a new collective agreement. The new three-year collective agreement brings wage increases, better parental leave, and greater flexibility in time off. While workers had pushed for more influence over their work schedules, this agreement is still seen as a significant win in securing better conditions and work-life balance.

• Minimum wage increases to 146.90 DKK per hour, and employer pension contributions rise by 1%.
• Workers can now use their leave fund for sick children, elderly care, or even grandchild support days.
• “Social parents” (non-biological parents in blended families) now qualify for leave, and solo parents can share leave with close family members.
• An extra two weeks of fully paid parental leave to be shared between parents.
• Employees gain increased flexibility in how and when overtime is compensated.
• Workplace representatives will receive an annual stipend of 9,000 DKK to encourage participation in union work.

📈 Prices remain high despite slowing inflation. Inflation in Denmark has slowed to 1.5 percent, down from 1.9 percent in December, but prices remain significantly higher than a few years ago. Food prices have surged over 20% since 2021, keeping consumer confidence low. Economists warn inflation could rise again, especially if global trade tensions escalate.

💰 Pocket money guidelines for kids. How much pocket money should kids get, and when? Experts recommend giving children a set amount regularly to teach financial responsibility, but not as payment for chores, to avoid a “what do I get for it?” mindset. Parents should guide, not control, spending and introduce money concepts early, making them better future consumers.

State of the markets

📊 Denmark nears 6 million people. The population reached 5,992,734 at the start of 2025, growing by 31,485 people in 2024. Births and deaths nearly canceled each other out, with only eight more births than deaths, meaning net migration drove the increase. Fertility rates continue to decline, while life expectancy is slowly rising.

👶 Women in Denmark are having their first child later. The average age for first-time mothers in Denmark reached 30.3 years in 2024, up from 28.8 in 2008, with over a third of new mothers now aged 30-34. Younger first-time births are declining, with only 11 percent of new mothers under 25. The trend is most pronounced in Copenhagen, where the average first-time mother is nearly 32.

🏡 Vejle’s flooded future as residents move out. Repeated flooding in Vejle’s city center has forced residents and businesses to leave, raising concerns over the town’s future. While the municipality is working on water retention projects, critics argue that action has been too slow. Property prices in flood-prone areas are already taking a hit, and local leaders admit they can’t guarantee future protection.

🇩🇪 Why the German election matters for you. Germany may be Denmark’s second-largest export market after the USA, but for many businesses, it is the most important. With over 10,000 Danish companies selling to Germany and 140,000 jobs tied to that trade, the outcome of the German election on February 23 could have a direct impact on Danish workers and businesses. Germany’s economy has been stagnating for five years, and industries are struggling with high energy costs, poor infrastructure, and tough competition from China.

🛡️ Infrastructure under cyber siege. Denmark’s largest energy and telecom provider, Norlys, is under constant cyberattack, with hackers attempting to break into their systems every single hour.This has prompted the company to hire new security specialists to strengthen its defenses. Authorities confirm that both criminals and foreign state actors are targeting Denmark’s infrastructure, forcing companies to consider extreme countermeasures, including the costly option of switching to manual control in emergencies.