Annotation
This economic survey of Denmark considers: macroeconomic developments and policy challenges; the management of public finances; structural policies relating to the labour market, education, tax, housing and competition; and policies to encourage environmentally sustainable growth. The pace of activity in the Danish economy slowed in 1999, without overheating after a long period of strong growth. The economy is projected to expand at rates close to its potential growth. Fiscal policy remains the main tool for macroeconomic stabilisation in the short run. Closer convergence with the business cycle in the Euro area would alleviate the macroeconomic policy challenges in the future, as would greater control over public spending.
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