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Denmark Set For Slower Growth Ahead Due To Global Slowdown

Denmark's economic growth is set to ease in the coming two years due to the impact from a slowing global economy, the country's central bank said Wednesday.

The economic growth forecast for 2020 was slashed to 1.5 percent from 1.7 percent predicted in March, the Danmarks Nationalbank said in a report.

The projection for 2021 was lowered to 1.5 percent from 1.6 percent.

Meanwhile, the growth outlook for this year was raised to 1.8 percent from 1.7 percent.

"So far, we have weathered the headwinds faced by some of the major economies. But we are not immune," Danmarks Nationalbank Govenror Lars Rohde said.

"Over time, slower growth abroad will affect a small, open economy like Denmark. We are headed for slightly slower growth over the coming years."

Despite the slightly slower growth, Denmark will remain in a boom period that may help prevent the economy from overheating, thereby safeguarding it from the risk of a subsequent deep recession, the bank said.

"A slight slowdown does not imply that we are on the brink of a downturn or recession," Rohde said. "Therefore, fiscal policy in Denmark should not be eased in the current situation."

The inflation forecast for this year was lowered to 0.8 percent from 1.2 percent. The projection for next year was cut to 1 percent from 1.5 percent and the outlook for 2021 was trimmed to 1.5 percent from 1.8 percent.

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