Denmark has sharply cut its 2025 economic growth outlook, citing weaker-than-expected performance from pharmaceutical giant Novo Nordisk and new headwinds from U.S. trade measures.
The government now expects gross domestic product (GDP) to expand by just 1.4%, down from the earlier forecast of 3%. Export growth projections were also slashed from 4.3% to 0.9% reflecting a slowdown in global demand for Danish goods.
At the center of the downgrade is Novo Nordisk, Denmark’s largest company and a key driver of recent growth. The drugmaker, which accounts for roughly 40% of Danish exports and around 2% of GDP growth, has reduced its full-year sales and profit guidance for the second time this year.
Adding to the strain, new U.S. tariffs on Danish exports have clouded the country’s trade outlook.
“Pharmaceuticals remain a cornerstone of our economy, but the extraordinarily large growth we have seen in recent years is unlikely to continue,” said Economy Minister Stephanie Lose, announcing the revised forecast at a press briefing in Copenhagen.
The slowdown underscores Denmark’s economic dependence on its pharmaceutical sector, raising concerns over the risks of relying too heavily on a single corporate powerhouse. Analysts say the downgrade could accelerate efforts to diversify growth into green energy, digital industries, and other high-potential sectors.
Despite the cut, officials stressed that Denmark’s economy remains fundamentally strong, with low unemployment and robust public finances providing a buffer against external shocks.
