The Danish central bank is forecasting significantly more economic growth for the current year. One reason: the success of the pharmaceutical company Novo Nordisk, which has brought a weight loss injection onto the market.
The economic success of the Danish pharmaceutical company Novo Nordisk is boosting the economy of the entire country. The Danish central bank has almost doubled its forecast for the country’s economic growth. The monetary authorities predicted today that gross domestic product is expected to increase by 2.4 percent this year. Previously they had assumed 1.3 percent. An increase of 1.4 (previously: 1.3) percent is predicted for the coming year.
According to the monetary authorities, one of the main reasons for the higher forecast is the success of the domestic pharmaceutical company Novo Nordisk, known for its weight loss injections. The number one Novo Nordisk produces popular medications for weight loss and the treatment of diabetes under the brand names Wegovy and Ozempic. Ozempic and Wegovy have helped Novo Nordisk achieve record sales and made it the most valuable listed company in Europe, ahead of French luxury goods group LVMH.
Two crucial ones Growth factors
A lot of the company’s production takes place abroad. According to the central bankers, the company’s production abroad is also included in the calculation of Denmark’s gross domestic product, even though many of the jobs are located outside Denmark.
In addition to the success of Novo Nordisk, the restart of the Danish Tyra gas field this month is also driving up the economic outlook. This was temporarily closed in 2019 for further development. “Without these two factors, we estimate that the Danish economy will only grow at a subdued rate of 0.8 percent this year,” said central bank chief Christian Kettel Thomsen.