#47 - Business news from the Economic Mission of the French Embassy in Denmark [fr]

Business news from the Economic Mission – 30/11/2020

Disclaimer - The Economic Mission strives to provide accurate and up-to-date information and will correct, to the extent possible, any errors that are brought to our attention. However, it cannot be held responsible for the use and interpretation of the information contained in this publication.

MACROECONOMICS

The construction sector is expected to grow by 4.5% in 2020. These strong results are partly explained by the low number of restrictions that have been applied to the sector. Optimistic estimates also continue in 2021: more than 2,500 new jobs could be created. In comparison, investments in the construction sector had fallen by 18% in the wake of the 2008 financial crisis. Finans

The generation entering the Danish labor market today will have an average retirement of 24 years - the lowest average among OECD countries. In France, the figure is 35 years, and the OECD average is 34. Unlike most other countries, if the number of years spent in retirement is decreasing from generation to generation in Denmark, it is because the legal retirement age is increasing faster than life expectancy. A recent bill proposes to increase the legal retirement age to 69 years. Finans

ECOLOGICAL TRANSITION

The development of photovoltaic solar farms continues: their power now reaches 1.25 GW. More than 5,275 new solar photovoltaic installations have been installed in two years, bringing the total to 106,000. The Danish Energy Agency also notes the upcoming construction of photovoltaic installations for a total of 250 MW. In comparison, the power of the Danish wind farm amounted to 6.1 GW in 2019. Finans

Ørsted joins forces with the British BP to develop a 50 MW water electrolysis plant to produce hydrogen in a German refinery. The plant will be powered by electricity from renewable sources - otherwise the hydrogen produced would not qualify as "green". Refineries already use large quantities of hydrogen for their operations. With this large-scale test project, which involves replacing "black" with "green" hydrogen, Ørsted intends to contribute to the reduction of CO2 emissions in heavy industry. The plant, located in Lingen in northwestern Germany, will be operational in 2024 and will be able to produce up to 9,000 tons of hydrogen per year. Børsen

The Danish companies Bjarke Ingels Group and Kilo Design designed the Pegasus capsules of Virgin Hyperloop, whose first tests with travelers were carried out this month in the United States. The capsule, which was sent at 160 km/h for this test, can reach 1,000 km/h while traveling in vacuum tubes. Virgin Hyperloop is one of the companies exploiting the Hyperloop technology, first unveiled by SpaceX and Tesla, then made available to the competition. Børsen

BUSINESS NEWS

60% of Danish companies have decided not to be audited in 2019. This means that more than 168,000 companies are the sole signatories of the fairness of their accounts. Their number has increased by 500% since 2012, mainly due to the relaxation of auditing rules, which dates from 2013. In 2019, it was estimated that 8% of companies provided false information to the Danish tax authorities. In response, the Minister of Trade and Financial Affairs, Simon Kollerup, has announced that he wants to tighten controls and increase the penalties for those companies in breach. The question of the obligation to conduct an audit is still being debated. Finans

The public rail transport company DSB is forecasting a deficit of DKK 1.3 billion (€170 million) in 2020. In the first nine months of the year, DSB recorded 91.5 million journeys, which is 34% less than in the same period last year. In a press release, the company estimates that traffic on its network will not return to pre-crisis levels before 2022. The government has already pledged to compensate for the losses of DSB and other public transport companies. Berlingske

The Retail Institute Scandinavia publishes its forecasts on the development of the food retail market in Denmark. While between 2010 and 2020 the number of retailers has decreased by 11%, it is expected to remain stable between 2020 and 2030, while online sales will continue to grow over the same period. Salling Group, mainly through its Netto brand, is expected to continue to gain market share, reaching 35.1% of the market in 2030. Finans

Copenhagen Airport closes 24 of its 78 gates until early 2022. The number of passengers at this airport has fallen by 71.3% in the first nine months of this year compared to last year. The institution estimates that its deficit for the year 2020 could reach 700 M DKK (94 M €). This partial closure, applicable as of November 25, could be lifted with a two-month notice if the situation were to improve rapidly before the beginning of 2022. Finans

WELFARE STATE

The number of people receiving social benefits increased by a historic 44,700 between the first and second quarters of 2020. In total, therefore, 768,000 people receive social aid, excluding pensioners and those receiving the universal student income. However, the Ministry of Employment points out that between the second and third quarters of 2020, the number of unemployed decreased by 24,000. Finans

The dematerialization of Danish public services keeps progressing. From the beginning of December, Danes will be able to obtain a digital version of their driver’s license, thanks to a secure mobile application. This pioneering initiative from the Danish Digital Agency, the Ministry of Transport, the Ministry of Justice and the National Police will be followed in 2021 by the dematerialization of the social security card. Berlingske

Dernière modification : 30/11/2020

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