COPENHAGEN: Firms in Denmark continued to put off investment last year. Denmark’s investment to GDP ratio continues to be low, even if employment growth indicates towards a need for investment, noted Danske Bank. Meanwhile, spare capacity continues to be significant in certain areas, including office property. Moreover, the current uncertainty in global economy is unfavourable to investment, even with lower interest rates, added Danske Bank.
However, housing investment in 2015 was surprisingly lower than in 2014. But data for completed homes and new home starts are at present beset by incomplete reporting that might be a factor in the national accounts, according to Danske Bank.
However, housing investment is definitely likely to expand in coming years. In 2015, public investment decelerated somewhat in 2015; however it is still high in historic terms. Public investment, according to 2016’s budget, is expected to further decline to counter the likely growth in public consumption that will most likely alleviate pressure on construction sector, noted Danske Bank.
