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Political Economy

Denmark reports biggest deficit in public finances for 28 years

Monday, 25 March 2013
Denmark is still struggling with a bleeding economy as the country's treasury announced a deficit in its public finances standing at Dkr 75.5 billion - it's the largest deficit since 1984.

The Danish deficit in its public finances in 2012 was Dkr 75.5 billion, according to new figures from Statistics Denmark. This corresponds to 4.2 percent of gross domestic product (GDP).

According to analyst establishments such as Nykredit Market, it was the largest deficit in 28 years. The deficit is driven by the payment of retirement contributions of Dkr28.5 billion.
The money is said to have been deducted from the account in the Central Bank but which have a direct impact on public finances by only about 1.7 percent of gross domestic product, according to senior economist Tore Stramer from Nykredit Markets in a written comment.

Payment of retirement benefits send the deficit to the largest billions, ever recorded in the statistics, dating back to 1999.

The deficit meant that Denmark is breaching EU rules on deficits in public finances, which shall not exceed three percent of GDP.
by Scancomark.com Team

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