Denmark Downgrades 2026 Growth Forecast Amid U.S. Trade Tensions

Denmark has revised its 2026 economic growth forecast to 1.4% due to uncertainty from U.S. trade tensions. The pharmaceutical and energy sectors provide growth support, with contributions expected from Novo Nordisk and the Tyra gas field. Tariffs and decreased confidence impact investment and consumption.

Denmark has adjusted its economic growth forecast for 2026, lowering it to 1.4% as opposed to the 1.7% predicted in December. The revision comes amid uncertainties highlighted by U.S. tariffs and trade tensions, according to the Economy Ministry.

Economy Minister Stephanie Lose stated that while the final impact of tariff hikes remains unclear, the mere uncertainty they present dampens investment and consumer confidence. Notably, Denmark's GDP growth projections for 2025 have been slightly raised to 3.0%, with substantial contributions expected from the pharmaceutical and energy sectors.

The rapid growth of pharmaceutical giant Novo Nordisk, coupled with the potential of the Tyra gas field, bolsters Denmark's economic outlook. As the nation navigates the effects of U.S. trade policies, strategic investments in U.S. production facilities provide some resilience against the changing trade landscape.

(With inputs from agencies.)