Following declining Danish exports to Germany since the onset of the corona crisis, the US has emerged as Denmark’s biggest and most import export market, making the fall out of next week’s US presidential election all the more important for Denmark, its economy and its export industries.
Much is at stake and some election outcomes will be more beneficial for Denmark than others, says analyst at Danske Bank, Bjørn Tangaa Sillemann.
”If Joe Biden is elected president and the democrats claims a majority in Congress, we could see a massive fiscal boosting of the US economy, which would have spill over effects around the world. For Denmark a best case would probably be if democrats win the election and the worst case would be a divided congress with republicans controlling the senate and democrats winning the house of representatives”, says Bjørn Tangaa Sillemann.
Both Biden and Trump will want to boost the economy, Biden through investments and increased public spending and Trump through tax cuts, and although the different measures will have different outcomes, both will boost the economy in a way that would have spill over effects for the rest for the world
But a divided congress would make it difficult for either of them to get a deal through and we could end up with no fiscal stimuli at all, says Bjørn Tangaa Sillemann.