COPENHAGEN, May 12 (Reuters) – Denmark’s economy could grow as much as 3.4% this year despite the negative effects of the war in Ukraine and record-high inflation, the country’s finance ministry forecast on Thursday according to business daily Borsen.
“Although we must expect a slowdown in the Danish economy during this year, the level of activity will continue to be high,” Finance Minister Nicolai Wammen said in an economic report seen by Borsen, set to be published later on Thursday.
The forecast is a considerable upgrade to an estimate released by the ministry in March, in which the economy was expected to grow 1.6% in a medium risk scenario.
However, in a scenario where the supply of Russian gas to Europe is cut off, the ministry only expects economic growth of 2%, according to Borsen.
The ministry expects inflation to rise 6.1% this year in its main scenario, Borsen reported, up from its March forecast of 4.5%.
The Danish central bank said in March it expected the economy to grow 2.1% this year.