The recent figures from Denmark's central bank, Nationalbanken, reveal a notable decrease in the national debt, standing at 294 billion kroner. This is a reduction of 28.6 billion kroner compared to the beginning of 2023 and is equivalent to approximately 10.5 percent of Denmark's GDP. The recorded debt level is the lowest since the Nationalbank began tracking it, showcasing a positive outlook for the country's public finances. Senior economist Kristian Skriver from the Danish Chamber of Commerce attributes this achievement to recent surpluses in public finances, propelled by factors such as high employment, low unemployment, and robust consumer spending.
Additionally, Denmark's disciplined budget practices, where politicians adhere to allocated spending, contribute to the low debt. The low state debt not only fosters economic confidence but also allows for keeping interest rates relatively low. This economic resilience, coupled with the ability to borrow more money if needed, positions Denmark favorably, especially in times of crisis. The country now ranks among the few with the lowest national debt globally, outperforming many European counterparts.
https://www.thelocal.dk/20240123/denmarks-national-debt-at-lowest-level-for-25-years
2 comments:
How were they able to decrease their debt? Did inflation or interest rates rise?
When mentioned that politicians adhered to allocated spending to reduce the national debt, where would that specifically be? Roads, government buildings, schools?
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