By Jacob Gronholt-Pedersen
COPENHAGEN (Reuters) -Denmark’s economy remains robust despite job cuts at Novo Nordisk, the finance minister told Reuters on Wednesday, dismissing concerns that the pharmaceutical company’s financial troubles could further impact the country’s economic outlook.
Novo Nordisk, known for its blockbuster weight-loss drug Wegovy, announced it would cut 9,000 jobs globally, including 5,000 in Denmark.
Last month, Denmark cut its 2025 economic growth forecast to 1.4% from 3%, citing weaker prospects for Novo Nordisk.
“I do not see today’s announcement as something that changes the economic estimates that the government has made,” Nicolai Wammen said in an interview.
“The Danish economy is extremely strong, and we have the highest employment ever in Denmark, very low unemployment, and very little debt. We have had a surplus on the public finances for nine years in a row,” he said. “In recent years, we have been the country in Europe with the largest surplus. So Denmark is in a very, very solid position.”
The Nordic nation, home to 6 million people, has benefited from Novo Nordisk’s rapid expansion, which has driven growth through its Wegovy weight-loss drug and Ozempic diabetes treatment.
Last year, Denmark ranked among Europe’s fastest-growing economies, with Novo Nordisk accounting for one-fifth of the country’s employment growth.
“To put the 5,000 layoffs in perspective, it is important to say that we have seen an increase in employment of 38,000 in the past year,” Wammen said.
Denmark’s export-oriented economy, supported by major companies such as shipping group Maersk, brewer Carlsberg, toymaker Lego, and wind turbine maker Vestas, remains sensitive to global developments but is bolstered by strong public finances and a savings surplus.
“Some ask if you can compare it to what happened with Nokia,” Wammen said. “I do not believe that Denmark is dependent on a single company,” he added.
“Novo Nordisk has the challenges they themselves have pointed out, but that does not change the fact that it remains a very strong Danish and global company.”
Nokia’s dominance of the mobile handset market ended abruptly when Apple presented the iPhone in 2007, which led to mass layoffs and economic stagnation in Finland.
(Reporting by Jacob Gronholt-Pedersen; Editing by Alexandra Hudson)
