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IMF: Denmark’s economy keeps expanding despite shocks

The International Monetary Fund said Denmark’s economy continues to expand despite shocks, with risks to growth skewed to the downside. The IMF expects Danish inflation to rise to about 2.5% by the end of 2026.

Original source

AI take

The IMF's downside-skewed risk call sits awkwardly beside its own inflation forecast, which implies price pressure firming toward 2.5% by end-2026 rather than easing — a combination that narrows the room for countercyclical support if those risks materialize. For a small, open economy like Denmark, that framing matters most for how growth resilience is tested against external shocks rather than domestic demand. Whether the inflation path and the downside risk assessment stay consistent in future IMF updates is the open question.

Generated by AI for reference only.

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