Denmark central bank issues warning as economy heats up

National Bank of Denmark
National Bank of Denmark: believes continuation of structural reforms may help increase supply of labour
Rachael King

The National Bank of Denmark revised up its GDP growth forecasts on September 13, noting unemployment continues to fall and inflation is rebounding. But it cautions the labour market is tight and the economy could suddenly overheat.

The Danish economy is now expected to expand by 2.3% in 2017, while in 2018 and 2019, growth is expected to be 1.8 and 1.7%, respectively. In its previous assessment, the central bank foresaw a stable rate of 1.6% across the three years.

“The upwards revisions

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