Better Economic Outlook of Denmark for 2018 due to Tax Cut Plan

The economic outlook for Denmark was increased as the center-right plans to the revision of the government's tax reduction in hopes of boosting growth.

The Gross Domestic Product is presumed to rise by 1.9 percent next year, bigger than the previous estimate of 1.8 percent based on the data sourced by Bloomberg, which will be publicized on Monday. For the year, the advancement rate of 2 percent is maintained.

The minority coalition of the Prime Minister Lars Lokke Rasmussen intends to proceed with tax cuts to boost the labor force and more people will join. The government has not gained the support of the anti-immigration Danish People’s Party, which is important to stay in control.  They aim to take hold of their capability to restrict immigration with the interest for the tax bill.

On a different matter, the government plans to increase the borrowing rates in 2018 from the assumed figure of 120 billion kroner in August to 127 billion kroner or 20 billion U.S. dollar, as stated by the finance ministry. It limited its inferred for domestic borrowing from 99 billion kroner to 86 billion kroner for this year.