Denmark’s real wages to grow faster in 2016

Denmark witnessed marginal recovery in wage growth as seasonally adjusted private sector wage grew 0.3% q/q in the third quarter of 2015. The wage growth has been driven marginally up by the recent recovery. As many wage agreements are due to be renegotiated in 2017, growing employment is likely to trigger slightly higher pay. With consumer spending seen supported by real income gains, the GDP of the economy is expected to boost.

"We now expect real wages to grow faster in 2016 than previously expected, with real wage growth set to be almost as high next year as in 2015. Consequently, real income gains should continue to support consumer spending and thus GDP growth" - Danske Bank