Denmark in Recession Mode as Budget Stunts Growth: Nordic Credit

Denmark’s weekend budget accord is provoking a backlash among business groups and economists who warn the measures agreed on risk depriving the flagging economy of future growth drivers.

“Denmark is on the edge of a recession,” Steen Bocian, head of economic research at Danske Bank A/S in Copenhagen, said yesterday in a phone interview. “This is not a budget that will help Denmark boost growth.” Instead, “there’s a risk that the measures agreed on will weaken incentives for people to work and therefore will be negative for the economy in the long run,” he said.