Denmark’s economic growth expected 2.3% in 2024, 2.6% in 2025, 1.9% in 2026.

Fitch Ratings said it affirmed Denmark’s long-term foreign currency issuer default rating at ‘AAA’ with a stable outlook.

The rating agency said Denmark’s rating is supported by a wealthy and high-value added economy, credible economic policy framework, sound public finances and strong external metrics.

Denmark’s economy grew 2.7% in the second half of this year, driven by the pharmaceutical sector, with exports up 8.3%, according to the statement.

Domestic demand, however, negatively contributed to GDP growth due to low consumer confidence and high interest rates, it added.

Fitch forecasts Denmark’s economic growth to come in at 2.3% this year, before averaging 2.6% in 2025 and 1.9% in 2026.

“The main risks to growth in the short term are geopolitical tensions and lower global demand,” it said.