Danmarks Nationalbank urges caution on fiscal space as it comments on the Economic Council's autumn paper

26 October 2026

Danmarks Nationalbank issued a statement dated 20 October 2026 commenting on the Economic Council's discussion paper, Autumn 2026. The bank said it shares the Chairmanship's overall assessment of the growth outlook, expecting strong growth this year followed by a slowdown. It agreed there are no signs that significant macroeconomic imbalances are building up in the Danish economy. The bank said inflation has risen because of higher energy prices and assessed that inflation risks are to the upside. It noted that the government is planning for a structural budget deficit close to the Budget Act's deficit limit of 1 per cent of GDP, and agreed with the Chairmanship that the government should exercise caution in using the full fiscal space. The bank said the government's Finance Bill for 2027 is consistent with its own September recommendation.