Denmark has demonstrated remarkable resilience in the face of the pandemic and energy crises. Staff expects robust growth to continue in 2024, but there are considerable external risks, including from geopolitical tensions. The financial system remains sound, but systemic risks are elevated due to still-high interest rates and heightened vulnerabilities in commercial real estate (CRE) markets. Demographic challenges and low productivity growth pose risks for long-term growth. Against this background, the policy priorities are as follows.