The new restrictions apply to 38 municipalities – or half the Danish population – from Wednesday 9 December up to and including 3 January 2021, obviously with the possibility of extension if the transmission rates do not decline sufficiently. Already existing national restrictions are extended up to and including February.

The new restrictions introduced in the 38 municipalities include:

• Pupils from 5th grade and up, including upper secondary schools and further education, must be taught remotely.
• Restaurants, cafés and bars will close but are allowed to do takeaway.
• Museums, theatres and cinemas will close, but outdoor amusement parks are allowed to remain open.
• Indoor sports activities will close, including fitness centres and public swimming pools.
• Public-sector employees who do not perform critical functions will be sent home.
• Private undertakings are encouraged to send their employees home.

All businesses concerned will be comprised by the compensation schemes and this will likely also apply to all employees affected.

As the new restrictions will only apply for a limited period, are of a regional nature and will even be over a traditionally long Christmas holiday, the economic consequences for Denmark in Q4 are considered to be highly limited in terms of unemployment and growth.

Moreover, the disbursement of the frozen holiday pay has boosted sales in a number of domestic businesses. Also many Danes who usually go abroad during Christmas will be prevented from doing so this year and are therefore more likely to spend their money in Denmark as was the case during the summer holiday.

This will presumably offset the negative effects of the new and very limited lockdown of the economy. There is no reason whatsoever to compare this situation with the big lockdown we had in the spring.