The Danish drug maker logo logo logo is a manufacturer of blockbuster diabetes and weight loss treatments and can be seen outside Theri Building as it presents its annual report on February 5, 2025 at Bagsvaerd’s Novo Nordisk in Denmark’s Bagsvaerd.
Mads Klaus Rasmussen | AFP | Getty Images
Denmark on Friday reduced its annual growth forecast from 3% to 1.4% due to weak expectations for drug giant Novonordisk.
Denmark has recorded high annual growth rates in recent years, and its economy has expanded by 3.7% last year after receiving a major boost from drug exports.
Danish Pharma giant Novo Nordisk makes the blockbuster weight management drug Ozempic and Wegovi.
The Ministry of Economy noted that Denmark’s US exports had a significant decline in early 2025 after a massive surge in late 2025. Generic drugs are also narrowing sales opportunities in the United States, the department said.
The drugs are currently offering just 1.3% points to Danish commodity export growth this year, down from 8.1% points in 2024.
The European drug sector has been shaken this year by the threat of US air tariffs, but now the EU-US trade agreement provides some degree of certainty.
The Danish Ministry of Economy has emphasized US tariffs on growth forecasts, but statistical revisions show that actual GDP did not expand more than previously calculated between 2021 and 2024.
“Growth in the first quarter of 2025 was also weaker than previously expected. With expectations of an increase in US tariffs and downward adjustments for the pharmaceutical industry, this led to a significant downward adjustment of estimates of GDP growth in 2025,” Google Translated said in a statement.
Despite the Brussels-Washington trade agreement, “a significant degree of unpredictability associated with the policies of the US administration” remains, which increases uncertainty regarding the terms of Danish exporters and may focus on business investment and activities. Meanwhile, households said they are concerned about global events and high food prices.
However, the ministry stressed that despite its low growth forecast for 2025, its economy is generally strong, with high employment and inflation expected to fall below 2% per year.
The 2026 growth forecast has increased from 1.4% to 2.1%, in response to higher private and public consumption expectations.
