Denmark raised its economic growth forecast for 2025 to 2.6% from its previous expectation in August of a 1.4% expansion, the country’s economy ministry said on Thursday.
The GDP forecast for 2026 was meanwhile increased to 2.2% from 2.1%, it added.
“The Danish economy has so far defied the headwinds and has proven to be extremely strong,” Economy Minister Stephanie Lose said in a statement, adding that GDP growth in the third quarter was the highest in four years.
“Employment continues to rise, inflation is low and stable, and the purchasing power of Danes is increasing,” she added.
Denmark has benefited in recent years from Wegovy-maker Novo Nordisk’s booming weight-loss business, and the country’s growth in 2024 ranked among the highest in Europe, in part driven by the drugmaker.
But in September, Denmark’s central bank cut its GDP forecasts for 2025-2027, citing a negative impact from U.S. trade tariffs and weaker growth in the pharmaceuticals industry.
Novo Nordisk, facing growing competition in the obesity drug market, has struggled with slowing sales growth and profit warnings this year, leading to layoffs of 9,000 employees, more than half of them in Denmark.