The Danish economy has been suffering during the global crisis but beyond the projected cyclical recovery it will need to restore sustained robust growth. While the level of national income is high, the gap vis-à-vis the leading OECD countries has widened somewhat over the past decade. GDP gains have been driven primarily by rising labour utilisation, related to the evolution of the “flexicurity” model, with increases in both the share of the population in work and average hours worked. At the same time, however, productivity has been slowing down.