Denmark Doubles 2026 Growth Forecast to 4 Percent

The Danmarks Nationalbank doubled Denmark's 2026 economic growth forecast to 4%, up from a previous estimate of 1.8%. This revision is driven by the extraordinary growth of pharmaceutical company Novo Nordisk, following an agreement with the United States administration to provide weight loss and diabetes medications to a larger patient base through public health insurance schemes, including Medicare and TrumpRx.

While the U.S. Food and Drug Administration recently approved the Wegovy pill, the central bank noted that the economic benefits are partially offset because much of the production occurs outside of Denmark. This limits the positive impact on domestic labor and capital.

Additionally, the agreement included price reductions of up to 30% for selected products. These reductions have eroded Denmark's terms of trade despite the overall increase in real exports.