(Bloomberg) -- The Danish economy will expand faster next year than previously estimated, boosted by exports from drugmakers including Novo Nordisk A/S, the government forecast.
Gross domestic product growth will probably come in at 2.9% next year, more than the 2.2% forecast published in August, the Economy Ministry said in a report on Thursday. The government also raised its estimate for this year’s growth to 3.0%, from 1.9% seen before.
The domestic economy is set to become more dependent on few large companies, the government cautioned.
The country’s pharmaceutical industry, especially known for Novo Nordisk’s popular weight-loss treatments, will continue to be a key driver of growth in the coming years while lack of demand continues to impact the rest of the industrial sector’s output, the government said. Exports will grow at 4.7% pace next year, more than the 4.1% seen in August.
As Novo expands its production facilities inside Denmark, the company will play a growing role in the domestic economy, the government said, and warned that the development of the Danish economy going forward is expected to be influenced by “a few large companies” to a greater extent than previously.
Late Wednesday, the government also cut its financing need for next year, though it said a recent agreement to buy a majority stake in Copenhagen Airports is not incorporated into the figures.
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