Denmark: Living without the euro for the time being

In 2000 the Danish economy grew faster than expected. The increase in GDP was probably 2½%, and the unemployment rate fell to ca. 4¾%. In 2001 GDP is expected to grow by about 2%. Employment will expand at a slower pace, and unemployment will fall to about 4½%. The rejection of EMU membership in the September 2000 referendum has had no negative effects. Vis-à-vis the euro countries, Danish interest rates might be higher, the attractiveness for foreign capital lower, the possibilities for taking full advantage of the EU single market more limited, and protection from exchange rate fluctuations and speculative attacks weaker.