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Denmark sees lower economic growth this year due to Ukraine war -Breaking


© Reuters. FILEPHOTO: View of Copenhagen taken from the Trinitatis Church’s top, Denmark. April 29, 2018. REUTERS/Benoit Tessier

COPENHAGEN, (Reuters) – The war in Ukraine is expected to drive up inflation. This could slash between 0.6-2.8 percentage points from Denmark’s economic growth for this year.

The pandemic in Japan had set the stage for rapid economic recovery, but this will be slowed by uncertainty from Russia’s invasion.

The direct trade between Denmark and Russia is very limited. “However, Denmark is indirectly affected by other countries like Germany or Finland that trade more Russia,” the ministry explained in a statement.

The ministry stated that Denmark’s economy is expected to grow 2.2% under a moderate scenario, 1.6% under a medium scenario, and 0.0% under the most difficult scenario. However, projections remain uncertain.

In December, the ministry forecasted that there would be 2.8% economic growth this year.

The medium scenario will see inflation rise to 4.5%, which is an increase from 2.2% in December’s forecast.

According to the Danish central banking, 2.1% is expected in economic growth this year. This compares with 3.1% predicted earlier.

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