Experts are predicting the recession that has hit the US will be felt in Denmark starting as soon as next year.

It is apparently still true that when the US sneezes Europe catches a cold, as both the Danish Bank Nordea Bank and the International Monetary Fund believe a weakening British pound and an waning US dollar will hamper the world's economy, and Denmark will not be spared.

A new analysis indicates that several other factors have also contributed to a bleaker economic outlook for the next two years: the bottom of the Danish housing market having fallen out, American consumers are shutting their pocketbooks, an ailing stock market and rising food and fuel prices.

Nordea still predicts a growth of 1.5 percent of GNP in 2008 - and that is only half that of 2007. By 2009, the bank says growth will have slowed to 0.9 percent. Predictions from IMF are even more grim, as they forecast only a 0.6 percent growth by 2009.

The sluggish growth will be felt on the job market, as a serious increase in unemployment.

As of March 1st 2008 - Statistic Denmark's most up-to-date figures - unemployment was at an all-time low of 55,400, or just 2 percent.




*Saves a little extra for a rainy day*