Rating Report
Denmark - Update
Thu 24 Apr, 2025 - 5:01 PM ET
Denmark maintains strong credit fundamentals with an 'AAA' rating and Stable Outlook. Its economy grew by 3.6% in 2024, driven by the pharmaceutical sector, with projections of 3.0% in 2025 and 2.0% in 2026. Public finances are robust, with a budget surplus of 4.5% of GDP in 2024, expected to decline to 2.7% in 2025 and 1.0% in 2026 due to increased defense spending. Public debt fell to 31.2% of GDP in 2024, with projections around 30% for 2025 and 2026. We expect Denmark's current account surpluses to average 11.0% of GDP in 2025 and 2026. The banking sector remains resilient with low non-performing loan ratios and strong capital buffers.
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