Economically stable Denmark signals end of coronavirus help for businesses

Shoppers have returned to streets in strong numbers. Denmark has signalled the end of Covid-19 support for businesses by the end of the year.
Shoppers have returned to streets in strong numbers. Denmark has signalled the end of Covid-19 support for businesses by the end of the year. Photo: Signe Goldmann/Ritzau Scanpix
Denmark is to withdraw financial support for businesses impacted by the coronavirus pandemic as the country continues to return to normal conditions following the end of general Covid-19 restrictions.

New rules taking effect on Thursday mean that only businesses which have lost 45 percent or more of their turnover due to the pandemic can apply for help paying for overheads.

The provision will remain in place for the rest of the year, according to a statement from the Ministry of Industry, Business, and Financial Affairs.

Previous rules, in effect since July, also allowed self-employed people with losses of 45 percent or more of turnover to be compensated by up to 90 percent. That expires as scheduled on Thursday.

“Denmark’s economy is barrelling forwards after corona. More Danes than ever are working and the economy is expected to grow by 3.8 percent this year,” the ministry said in a statement.

Unemployment levels have been falling throughout the period following the post-lockdown reopening.

The number of people out of work fell by 5,600 to a total of 101,300 between July and August, according to seasonally-corrected data from Statistics Denmark. That brought unemployment to its lowest number since January 2009.

READ ALSO: Why does Denmark have so many job vacancies? 

An estimate for economic growth during the second quarter of this year has meanwhile been raised after an earlier projection proved too low, revised Statistics Denmark figures show.

GDP is now estimated to have grown by 2.8 percent in the second quarter. The earlier estimate was 2.3 percent.

“We are now living in a society without corona restrictions. And that makes a big difference to Danish businesses, which for the most part have got their wheels turning again,” businesses minister Simon Kollerup said in the statement


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