Long-standing commitment to fiscal discipline, driving an uninterrupted decline in the general government debt burden Robust track record of prudent macroeconomic policies and structural reforms, underpinning low inflation and a stable currency Resilient, modern, diversified, export-oriented economy The challenge of an aging population, which, combined with a generous welfare system, increases the need for expenditure discipline and/or further structural reforms The comparatively high external indebtedness of the financial sector, mitigated by a financially strong banking sector Highly leveraged household sector, making domestic demand vulnerable to a reversal in the buoyant property market The ratings on Denmark reflect policymakers' longstanding commitment to fiscal discipline. The general government is expected to continue posting significant fiscal surpluses, equivalent to 1%-2% of GDP in
