Denmark Faces Economic Headwinds as Pharmaceutical and Energy Giants Struggle
COPENHAGEN – Denmark’s economic outlook is clouding as challenges mount for two of its most significant companies, Novo Nordisk and Ørsted, raising concerns about potential ripple effects across the national economy. Recent setbacks for the pharmaceutical leader and the renewable energy firm are prompting analysts to reassess Denmark’s previously robust economic trajectory.
For decades, Novo Nordisk and Ørsted have been cornerstones of Danish prosperity, driving growth and employment. Though, Novo Nordisk is grappling with production bottlenecks for its blockbuster weight-loss drugs, Wegovy and Ozempic, while Ørsted faces considerable financial losses linked to offshore wind farm projects in the United States. These converging issues pose a significant threat to Denmark’s economic stability, perhaps impacting government revenue, investment, and job creation.
Novo Nordisk, responsible for roughly 15% of Denmark’s total exports, is struggling to meet soaring global demand for its diabetes and obesity medications. Production capacity limitations have led to intermittent supply shortages, frustrating patients and prompting concerns about long-term market share. The company recently announced investments to expand manufacturing facilities, but these expansions will take time to materialize.
Concurrently, Ørsted, the world’s largest developer of offshore wind farms, is facing billions in write-downs related to its US projects.Increased costs, supply chain disruptions, and permitting delays have rendered several projects financially unviable, triggering a sharp decline in the company’s stock price and raising questions about its future strategy. On september 9, 2025, Ørsted announced impairments and credit rating downgrades, sending shockwaves through the Danish financial markets.
The combined impact of these challenges is prompting economists to lower their growth forecasts for Denmark. While the Danish economy remains relatively strong, with a low unemployment rate and a healthy public debt level, the setbacks for Novo Nordisk and Ørsted represent a significant headwind.The Danish government is closely monitoring the situation and considering potential measures to mitigate the economic fallout,including investments in infrastructure and support for affected industries. The unfolding situation underscores Denmark’s vulnerability to external shocks and the importance of diversifying its economic base.
