OECD Economic Surveys: Denmark 2024
Following a robust recovery, growth has slowed and the economy has been running at two speeds. Headline inflation has fallen, but underlying price pressures remain high. While the public finances are robust with a budget surplus and low public debt, population ageing poses long-term risks to the social model, calling for efficiency gains at the local level. Ambitious greenhouse gas emission reduction targets and policies are in place, but further reforms are needed to advance the green transition. A reduction in barriers to working longer hours, extending working lives for young and older people, and international recruitment can help to address persistent labour shortages. The demographic, digital and green transitions will transform jobs and skills requirements, calling for an agile education and training system throughout working life.
SPECIAL FEATURE: ADDRESSING LABOUR AND SKILLS SHORTAGES
Key policy insights
Following a robust recovery from the COVID-19 shock, Denmark’s GDP growth has slowed and the economy has been running at two speeds between domestic and specific international activities. Headline inflation has fallen, but underlying price pressures remain high. While the public finances are robust with a budget surplus and low public debt, population ageing poses long-term risks to the Danish social model as long-term care spending increases and the working-age population declines, calling for efficiency gains at the local level. Denmark has put in place ambitious greenhouse gas emission reduction targets and made significant strides in achieving efficient climate change mitigation policies. Further policy reforms to advance the green transition can help to reduce dependence on fossil fuel energy and achieve ambitious targets.