Denmark's food exports to Britain, which totaled 11 billion
crowns ($1.7 billion) in 2017, are set to drop by around 24
percent should Britain exit the European Union without a deal,
leaving goods subject to World Trade Organisation tariffs, the
OECD said.
Britain's parliament is widely expected to vote against Prime
Minister Theresa May's Brexit deal on Tuesday, opening up
outcomes ranging from a disorderly divorce to a reversal of
Brexit.
Britain is Denmark's fourth largest export market absorbing 7.8
percent of total exports in 2017. Denmark is the main supplier
of Britain's imported pork.
Denmark's overall exports to Britain could drop by 17 percent in
the event of a no-deal Brexit, resulting in a 1.3 percent
decline in GDP in the medium term, the OECD said in a country
report on Tuesday.
The Danish government said last month that a hard Brexit could
reduce the economy as much as 1 percent.
The OECD said it expected Denmark's economy to grow 1.9 percent
this year, slightly above the 1.7 expected by the Danish
government, and 1.6 percent next year, in line with the
government forecast.
It added that Danish fisheries are "very dependent" on continued
access to British waters. Of the total volume of fish unloaded
by Danish fishermen in 2012-2016 45 percent came from British
waters, a 2017 report showed.
The OECD also said Danish household debt, which is the highest
across the 34 OECD countries, is a "source of vulnerability",
even though it is somewhat counterbalanced by large pension
savings.
(Reporting by Teis Jensen; Editing by Alexandra Hudson)
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