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2025-09-12 18:35:38
[A Giant's Shakeup: Denmark's Economy Plays a Variation on "Dutch Disease"] ⑴ The Danish economy is undergoing a structural adjustment driven by the surge in sales of pharmaceutical giant Novo Nordisk, reminiscent of the Dutch "Dutch Disease" phenomenon of the 1960s. While Novo Nordisk's $243 billion in weight-loss drug sales may slow national growth, Denmark's diversified economic structure is expected to cushion the blow. ⑵ Market analysts point out that Novo Nordisk announced plans to lay off 9,000 employees, representing 11.5% of its global workforce, in an effort to save $1.3 billion annually. Approximately 5,000 of these positions will be cut in its home country of Denmark. Notably, the company had already implemented a global hiring freeze for non-critical positions in August. ⑶ These adjustments have had a significant impact on Denmark's economic growth outlook. The Danish government has lowered its 2025 economic growth forecast from 3% to 1.4%. Authorities attribute this to external pressures, including Trump's tariff rhetoric, and a weakening outlook for Novo Nordisk, the country's largest pharmaceutical company. Despite the challenges, Novo Nordisk's predicament may also bring benefits, such as the reallocation of resources to seize new growth opportunities. The diversity of the Danish economy will be key to its response to this variation of the "Dutch disease".
