Novo Nordisk Slowdown Weighs On Denmark's Economic Outlook

Weaker prospects for pharmaceutical giant Novo Nordisk A/S (NYSE:NVS) have prompted Denmark's economic ministry to cut its 2025 GDP forecast, now expecting just 1.4% growth, down 1.5 percentage points from May's projection.

Growth is seen rebounding to 2.1% in 2026, up 0.7 points. Employment is still rising and inflation is projected to stay below 2%. The ministry said U.S. tariff hikes will further weigh on exports and global activity, while an EU-U.S. trade framework reduces uncertainty around sales terms.

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Denmark's growth outlook is being shaped by consumer strength, exports, and Novo Nordisk's trajectory. Rising household demand, boosted by wage gains, tax cuts, and high employment, is supporting private consumption.

Reuters noted Denmark's strong 2024 growth was among Europe's highest, with Novo Nordisk alone contributing one-fifth of employment gains. But headwinds are mounting.

U.S. tariffs, for example, dragged exports sharply lower in early 2025, cutting forecast growth to 0.9% from 4.3% in May.

Meanwhile, Novo Nordisk—maker of Wegovy and Ozempic—announced a global hiring freeze and lowered its 2025 sales forecast to 8–14% growth, down from 13–21%, citing slower uptake of branded GLP-1 drugs and rising competition from Eli Lilly and compounded alternatives.

Still, Denmark's economy ministry raised its 2026 GDP outlook to 2.1%, pointing to stronger private and public spending.

Price Action: NVO stock is up 0.04% at $56.14 at the last check on Friday.

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