Growth in Danish business life’s investments will be less this year but continues to increase all the same. Moreover, it is historic large amounts which are being set off to improve production facilities in Danish companies these years.

Danish business life continues to invest as never before in new equipment, transport means, computer programmes and various other production equipment, writes Berlingske Business.

Growth in the major investments is decreasing, however, as a result of the somewhat slack economic prospects and the increasing interest rate. However, it is solely the growth rate that is lower than before. The investments continue to increase at a good rate.

“At the same time the level is historic high and there is no chance directly that the investments this year will be less than last year,” says chief economist Klaus Rasmussen of Danish Industries (DI).

Economist Tore Damgaard Stramer of Danske Bank explains that they are also expecting a lower growth rate in Danish business life’s investments. However, decline in this area comes after several years of investments of a size hardly ever seen in Denmark before.

“It is most likely also why Danish export is doing so well. The export has increased much more than expected. This is probably the result of the competitiveness of Danish business life having increased considerably during the last few years – thanks to huge investments. Consequently export can now increase even though our salaries are increasing more than abroad; even though the Danish crown stands strong against the US dollar and the British pound; and even though signs of recession are showing in both the USA and Europe,” says Tore Damgaard Stramer.

Altogether the major Danish export companies invested no less than EUR 33 billion in new production equipment. This figure does not even include housing and other buildings. This was all of 9.1 per cent more than the previous year and brought the investments’ share of the gross national product (GNP) up near 14 per cent.