The Danish economy is performing weaker than expected, the National Bank said on Tuesday.
Nationalbanken said Denmark’s economy would only grow by 0.8 percent, down significantly form its 1.5 percent growth forecast from June.
The bank’s estimate is also well below the government’s stated goal of 1.4 percent growth.
“The global economy continues to grow at a moderate pace and with significant differences across regions. Development in the first half of the year was a bit weaker than expected at the start of the year,” Nationalbanken wrote in a statement.
In addition to nearly halving this year’s expected growth, the bank also trimmed expectations for 2015 from a 1.8 percent growth forecast to 1.7 percent.
Nationalbanken’s growth forecasts would put Denmark’s budget deficit at 3.2 percent of GDP, above the EU’s stated threshold of three percent.
But despite the significant downgrade of expectations, Nationalbanken stressed that economic improvements could still be right around the corner.
“Nationalbanken expects a strengthening of the cautious recovery that has been underway since 2013 and which will gradually become more self-sustaining,” the bank’s statement read.