Denmark's national bank predicts tremendous economic decline in 2020 due to COVID-19

Source: Xinhua| 2020-06-17 20:08:39|Editor: huaxia

COPENHAGEN, June 17 (Xinhua) -- Denmark's economy will experience a tremendous decline in 2020 as a result of the social lockdown due to COVID-19, according to a forecast from the national bank published Wednesday.

Denmark's central bank estimated that the country's gross domestic product (GDP) will fall by 4.1 percent.

"The closure of communities has created high unemployment in a few months. Therefore, there is a significant risk that the recovery of the economy will be long-lasting," said Lars Rohde, the bank's director.

However, the government recently ramped up measures to reopen the economy to create an economic rebound in 2021 and promote a partial recovery in economic activity.

"The fiscal measures agreed at Christiansborg will contribute to a more smooth business cycle when the aid packages are phased out," Rohde said.

"If the recovery becomes weaker than expected, further relief may be needed next year and the year after," the director added. Enditem