Based on the forecasted data, private pension spending in Denmark as a percentage of GDP is expected to see a steady year-on-year increase from 2024 to 2028. Specifically, the spending is projected to grow from 5.33% in 2024 to 5.50% by 2028. This represents a minimal but consistent annual increase, indicating a stable growth pattern in private pension expenditure relative to GDP.
When analyzing the variations over the last two years and the compound annual growth rate (CAGR) over the last five years, it is evident that the private pension spending is gradually increasing. The year-on-year increase from 2024 to 2025 is approximately 0.75%, from 2025 to 2026 is around 0.93%, and from 2026 to 2027 is about 0.74%, with a final rise from 2027 to 2028 of approximately 0.73%. The CAGR over the five-year period will be around 0.80%, indicating steady upwards momentum.
Future trends to watch for include any significant changes in Denmark's economic policies that may impact private pension contributions and potential shifts in the demographic landscape that could alter the pension system's dynamics. Additionally, monitoring inflation rates and investment returns will be crucial in understanding how these factors might influence private pension spending as a percentage of GDP.