Lolland-Falster and South Zealand lag behind in economic growth

Lolland, Guldborgsund and Vordingborg are at the lower end when looking at the economic development in Danish municipalities in recent years.

A new report from the National Association of Municipalities shows that all three municipalities are in the bottom third of the country measured by average GDP growth from 2019 to 2023.

Guldborgsund ranks 70th out of the country's municipalities with an average annual growth of minus 0.9%. Lolland ranks 79th with minus 1.2%, while Vordingborg is even further down the list at 84th with minus 1.4%.

Næstved is also not high in the report. The municipality ranks 78th in the country with an average annual GDP growth of minus 1.2% in the period from 2019 to 2023.

Nationally, the average annual growth in the period has been 1.4%.

Large differences in Denmark

The report shows large differences between the country's municipalities.

While some municipalities experience very strong progress, the development goes the opposite way in a number of other areas. In total, 61 municipalities have seen a decline in economic activity in 2023, while 34 have seen progress.

Municipalities with large pharmaceutical companies or other large industrial enterprises typically rank at the top. This includes Gentofte, Kalundborg, Gladsaxe, and Hillerød.

Here, the pharmaceutical industry in particular significantly boosts the figures.

Better prospects for Lolland

Even though Lolland has been low on the list in recent years, the first indicators for 2024 suggest a slightly better development.

The preliminary GDP indicator for 2024 places Lolland in the middle of the field among Danish municipalities. In contrast, Guldborgsund and Vordingborg remain among the municipalities with the lowest expected growth.

However, the figures for 2024 are still subject to considerable uncertainty and will not be finalised until later.

The region contributes more than before

Looking at regions, West and South Zealand collectively contribute more to Danish economic growth than the region's size would normally suggest.

This is unusual from a historical perspective, where the area typically has not had a significant growth contribution to the overall Danish economy.

But even though the region as a whole contributes more, it does not mean that all municipalities are keeping up. On the contrary, the report shows that several municipalities in the area continue to struggle with weak economic development.