COPENHAGEN (Reuters) – Denmark’s government expects inflation to fall to 3.9% this year, in line with the central bank’s forecast, according to a finance ministry report set to be released on Thursday, Danish broadcaster TV 2 reported.
Inflation, which stood at 7.7% last year, is expected to fall further to 2.8% next year, according to the report.
The government is set to present its 2023 budget proposal and economic forecast at 1100 GMT.
The previous government’s budget proposal from August, which was never passed, due to a general election in November, had focused on combating inflation by limiting new investments and setting aside a reserve to help Danes cope with rising prices.
On Thursday, the government will also propose tight spending for 2023, to prevent public spending from stoking inflation, business daily Borsen said, citing the budget proposal.
The government expects the economy to grow by 0.2% this year, down from an August forecast of 0.8%, it added.
By contrast, the central bank has said it expects the economy to grow by 0.9% this year.
Public finances will see a structural surplus of 0.7% of GDP in 2023, up from 0.4% seen last autumn, Borsen said.
(Reporting by Jacob Gronholt-Pedersen, Nikolaj Skydsgaard and Louise Rasmussen; Editing by Anna Ringstrom and Clarence Fernandez)
