Denmark Revises 2025 Growth Forecast Downward to 1.4% Amidst Novo Nordisk Challenges

Denmark Cuts 2025 Economic Growth Forecast as Novo Nordisk Stumbles

August 29, 2025 – Denmark’s government lowers its growth forecast for 2025 from 3% to 1.4%. The drop comes as pharmaceutical giant Novo Nordisk slows in performance. The company makes popular diabetes and weight-loss drugs like Ozempic and Wegovy.

Impact on the Pharmaceutical Sector

Denmark grew by 3.7% in 2024 with a strong rise in pharmaceutical exports. Novo Nordisk played a key role in this growth.

In early 2025, exports to the United States, a key market for the company, fell. The Ministry of Economic Affairs and the Interior gave these reasons:

Exports spiked in late 2024. Now, stocks drop.
The company loses market share against its rivals.
U.S. markets now see more generic drugs.

U.S. Tariffs and Trade Changes

U.S. tariffs on European medicines add to the doubt. A recent EU-U.S. trade pact cleared up some issues, yet tariff worries still affect growth.

The Danish Economic Ministry said:
"Growth in the first quarter of 2025 did not meet expectations. U.S. tariff hikes and lower drug industry results led us to cut the GDP growth estimate for 2025."

Outlook Despite These Issues

The ministry stresses that Denmark’s economy stays strong at its base. Some signs of strength are:

High employment as job numbers hold steady.
Controlled inflation that stays below 2% each year.

The forecast for 2026 rose from 1.4% to 2.1%. This change comes as more private and public spending is expected.

Novo Nordisk’s Position and Plans

A few years ago, Novo Nordisk became Europe’s most valuable firm. Demand for its drugs surged then. Now, the stock has lost over 10% in 2024 and more than 40% in 2025 year-to-date. This drop changed its market ranking.

In its quarterly report released earlier this month, Novo Nordisk showed a 67% sales rise over the past year. The company earned 19.53 billion Danish kroner (around $3.03 billion). It now plans to push more direct sales. The company faces strong competition from U.S. rival Eli Lilly and generic drug makers. Washington also pressures it to drop domestic drug prices.

Summary: Denmark lowers its economic growth forecast due to a slowdown in its key pharmaceutical sector. With falling exports and tariff worries, immediate growth is weak. A recovery is expected in 2026 with more domestic spending and new company strategies.

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