Denmark: Moderate growth with pharma distortions – Nordea

Nordea’s Helge J. Pedersen notes that Danish GDP grew 2.9% in 2025, with fourth-quarter growth at 0.2%. The pharmaceutical sector’s volatility significantly distorted both quarterly and annual figures, masking underlying trends. Domestic demand, especially private consumption and public spending, remained resilient, while investment weakened and inventories dragged on GDP.

Pharma volatility clouds GDP signal

"The Danish economy, measured by GDP, expanded by a robust 2.9% in 2025, according to new figures released this morning by Statistics Denmark. Fourth-quarter growth was recorded at 0.2% compared to the previous quarter."

"The pharmaceutical industry has gained extraordinary significance for Danish economic growth. Without its contribution, gross value added (GVA) would have been 1.7% for the full year 2025. However, in the fourth quarter, the pharmaceutical industry severely dampened growth."

"This development once again demonstrates that the pharmaceutical industry's substantial importance to the Danish economy means GDP figures can be difficult to use as a reliable indicator of how the Danish economy is actually performing. Production fluctuates significantly month-to-month, and a large portion is based on manufacturing outside the country's borders."

"Examining demand components reveals continued growth in private consumption, which rose 0.2% over the quarter—somewhat less than in the third quarter. This marked the ninth consecutive quarter of private consumption growth!"

"From an international perspective, Danish economic development was moderate in the fourth quarter. Growth in both the EU and eurozone was 0.3% over the quarter."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)