The logos of Danish drugmaker Novo Nordisk, maker of the blockbuster diabetes and weight-loss remedies Ozempic and Wegovy is seen outdoors theri constructing as the corporate presents the annual report at Novo Nordisk in Bagsvaerd, Denmark, on February 5, 2025.
Mads Claus Rasmussen | Afp | Getty Photos
Denmark on Friday slashed its annual progress forecast to 1.4% from 3%, largely as a result of weaker expectations for pharmaceutical big Novo Nordisk.
Denmark has recorded robust annual progress in recent times, with its economic system increasing 3.7% final 12 months after getting a significant enhance from pharmaceutical exports.
Danish pharma big Novo Nordisk makes blockbuster weight administration medicine Ozempic and Wegovy.
The economic system ministry famous that Denmark’s U.S. exports fell considerably in early 2025 after an enormous spike in late 2024, as a result of each stock build-up and elevated competitors within the weight reduction drug market, which has seen Novo lose market share. Generic medicines are additionally squeezing its gross sales alternatives within the U.S., the ministry stated.
Prescribed drugs are actually anticipated to contribute simply 1.3 proportion factors to Denmark’s items exports progress this 12 months, down from 8.1 proportion factors in 2024. Complete items export progress is projected to fall to 2.7% in 2025 from 10.5% the earlier 12 months.
Europe’s pharmaceutical sector has been rocked this 12 months by the specter of sky-high U.S. tariffs, although some certainty has now been offered by the EU-U.S. commerce deal.
The Danish economic system ministry stated U.S. tariffs had weighed on its progress forecast, whereas a statistical revision confirmed that actual GDP expanded much less in 2021-2024 than beforehand calculated.
“Progress within the first quarter of 2025 has additionally been weaker than beforehand anticipated. Along with the American tariff will increase and downwardly adjusted expectations for the pharmaceutical business, this has given rise to a major downward adjustment of the estimate for GDP progress in 2025,” it stated in a press release, in response to Google Translate.
It added that regardless of the Brussels-Washington commerce deal, there remained a “vital diploma of unpredictability linked to the U.S. administration’s coverage,” which was including to uncertainty round situations for Danish exporters, doubtlessly weighing on enterprise investments and exercise. Households, in the meantime, stay involved about international occasions and excessive meals costs, it stated.
The ministry confused, nevertheless, that regardless of the decrease 2025 progress forecast, its economic system stays robust general, with excessive employment and inflation anticipated to be beneath 2% on an annual foundation.
It revised its progress forecast for 2026 greater, to 2.1% from 1.4%, on expectations for greater non-public and public consumption.
