Denmark economy sizzles but lack of labour worrying
Monday, 12 November 2007
COPENHAGEN, Nov 11 (AFP): Denmark's bullish economy is one of the strongest in Europe, charging full-steam ahead with record low unemployment, moderate inflation and a budget surplus, but it risks overheating, economists say.
With a rosy global economy to lean on, Denmark, which holds legislative elections Tuesday, has enjoyed an exhilarating economic ride in recent years.
The Scandinavian country has become "the star pupil of the European Union when it comes to unemployment and a flexible labour market," says Jes Asmussen, a macroeconomic analyst at Handelsbanken.
In September, Denmark had a jobless rate of 3.1 per cent, its lowest level in 33 years.
And while it is not a member of the Eurozone after rejecting the single currency in a 2000 referendum, it boasted a budget surplus of 4.6 per cent of gross domestic product (GDP) in 2006, outdoing Eurozone countries and clinching the top spot among European Union member states.
With a rosy global economy to lean on, Denmark, which holds legislative elections Tuesday, has enjoyed an exhilarating economic ride in recent years.
The Scandinavian country has become "the star pupil of the European Union when it comes to unemployment and a flexible labour market," says Jes Asmussen, a macroeconomic analyst at Handelsbanken.
In September, Denmark had a jobless rate of 3.1 per cent, its lowest level in 33 years.
And while it is not a member of the Eurozone after rejecting the single currency in a 2000 referendum, it boasted a budget surplus of 4.6 per cent of gross domestic product (GDP) in 2006, outdoing Eurozone countries and clinching the top spot among European Union member states.