Denmark's Economic Growth Forecast Cut Amid Novo Nordisk Slowdown

Denmark's economic ministry has cut its 2025 GDP forecast to 1.4% growth, citing a slowdown in pharmaceutical giant Novo Nordisk. The ministry expects growth to rebound to 2.1% in 2026. Denmark's economy is being shaped by consumer strength, exports, and Novo Nordisk's trajectory. Rising household demand and high employment support private consumption, but headwinds from US tariffs and competition from Eli Lilly may impact Novo Nordisk's sales.

Denmark's economic ministry has revised its 2025 GDP growth forecast to 1.4%, down from a previous 3%, citing weakened prospects for pharmaceutical giant Novo Nordisk (NOVOb.CO) and increased tariffs on Danish goods exported to the United States [1]. The Nordic country, home to companies like Novo Nordisk, Maersk (MAERSKb.CO), Carlsberg (CARLb.CO), Lego, and Vestas (VWS.CO), has seen its economic growth significantly impacted by these factors.

Novo Nordisk, maker of the Wegovy weight loss drug and Ozempic diabetes treatment, has faced challenges in recent months. The company has cut its full-year sales and operating profit forecasts twice this year, as it struggles to maintain its competitive edge against U.S. rival Eli Lilly (LLY.N) [1]. The company's workforce, which has nearly doubled over the past five years, is facing layoffs, reflecting the industry's slowdown.

The Danish economy ministry attributes the growth slowdown to a combination of factors. It highlights the increasing competition in the weight loss product market, which has dampened growth expectations in the pharmaceutical industry. Additionally, the ministry notes that exports to the United States, Denmark's largest export market, have decreased significantly, with exports now forecast to grow by just 0.9% in 2025 compared to a May forecast of 4.3% [1].

Despite these challenges, the ministry expects the Danish economy to rebound in 2026, projecting a GDP growth rate of 2.1% [1]. This growth is anticipated to be driven by higher private and public spending.

Denmark's economy remains resilient, supported by strong consumer demand and high employment rates. However, the headwinds from U.S. tariffs and the competitive pressures faced by Novo Nordisk could impact the country's export-oriented economy. The pharmaceutical industry's key role in the Danish economy is acknowledged, but the ministry expects the pace of expansion to slow down [2].

References:
[1] https://www.reuters.com/world/europe/novo-nordisk-woes-prompt-denmark-slash-countrys-2025-growth-2025-08-28/
[2] https://www.marketscreener.com/news/denmark-halves-economic-growth-outlook-on-novo-nordisk-weakness-tariff-hit-bloomberg-says-citing-ce7c50dcd18ff72d