OECD Economic Surveys: Denmark 2026

Denmark has a growth-friendly business environment, a strong labour market and sound public finances but still faces challenges. The economy has run at two speeds, mainly driven by multinational firms, while domestic demand and productivity growth have been weak. Although public debt is low and the fiscal framework is strong, improving spending efficiency and priorities over the longer term would help manage budget pressures created by population ageing, climate change and national security requirements. Denmark is at the forefront of climate mitigation policies and is on track to meet its 2030 climate targets. However, a comprehensive strategy for climate change adaptation and adequate investment in risk prevention are needed to improve climate resilience and address exposures to flooding, storm surges and coastal erosion. Policy reform can further improve Denmark's high livings standards. Reducing barriers for people to realise their family plans requires addressing remaining gaps in family policies and services, notably improving childcare quality. Reforms of property taxation, building regulation, social housing and rent controls, can help to raise housing supply, ease affordability issues in urban areas and support residential mobility.