– The decline in the third quarter is not a sign that the upturn in the Danish economy is ending. It follows a period of powerful growth in the first quarter and GDP has increased by 2.1% in quarter 1-3 of 2017 compared to last year. At the same time, there are indications of comfortable growth in the fourth quarter, says LO-economist, Mette Hørdum Larsen.
Uncertainty due to slow process to lower car registration tax
– The drop in the third quarter was especially driven by a drop in private consumption, especially in car sales. This was a direct consequence of the reaction in car sales brought on by the slow process surrounding the government?s proposal to lower registration taxes on new cars. Meanwhile, car sales have gone up since October.
Upturn continues: highest growth rate in 12 years
We are looking at a growth in the economy of more than 2% this year. This would be the highest rate in 11 years. The upturn in the Danish economy continues, says LO?s economist.
Employment continues to grow – with 45,000 more in employment this year – along with a decline in unemployment. The workforce is growing steadily these years and employment can therefore increase without any significant labour shortage. In other words, there are still idle hands on the labour market. In certain areas, there is a shortage of workers with specific qualifications, and not least skilled labourers.
Leaving no one behind
– The most important thing for the Danish economy right now is to ensure that everyone benefits from a long-term upturn. The upturn allows more citizens who are marginalized to gain a foothold on the labour market. The potential is big. However, it is important to ensure the right match between the qualifications in demand by the companies and the qualifications of the workforce. This is ensured, primarily, by investing in skills’ upgrading and training. And it requires a focused labour market- and social policy, says LO-Economist Mette Hørdum Larsen.