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Danish economy keeps growing without considerable imbalances: central bank

Source: Xinhua| 2018-09-13 00:52:09|Editor: yan
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COPENHAGEN, Sept. 12 (Xinhua) -- The Danish economy has moved further into the upswing without considerable imbalances building up, the country's central bank said on Wednesday.

"During 2018, the economy has moved further into the upswing, and this is expected to continue in the coming years," Danmark's Nationalbank said in a quarterly review.

It added that the employment growth has been healthier and more balanced during the current upswing than during the upswing in the mid-2000s, which ultimately led to the economy being overheated.

The central bank also pointed out that the Danish krone has been stable, and it is the longest period without interventions in the currency market since the adoption of the fixed exchange rate regime in 1982.

It however warned of overheating, adding that "it is wise to use the good times to prepare for a reversal at some point as upswings do not last forever."

"The overall objective of economic policy must be to steer safely through the upswing and contribute to a subsequent soft landing," the bank's governor Lars Rohde said in a statement.

"Although we are in the middle of an economic boom with positive developments in the labour market, it is worth recalling that every upswing must come to an end. When growth begins to slow down, fiscal policy should not actively try to counteract this," he added.

Growth in gross domestic product (GDP) is forecast at 1.7 percent in 2018 as against a previous projection of 1.9 percent, if a large one-off patent-related payment that increases GDP by 0.4 percent in 2017 is excluded.

The figures forecast for 2019 and 2020 remain unchanged at 1.8 percent and 1.7 percent respectively.

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