Donald Trump is interested in annexing Greenland, an Arctic island offering a wealth of untapped mineral resources.
But as the U.S. president dialled up the rhetoric about America annexing the self-governing Danish territory, sparking a backlash from international leaders, a report detailed the challenges facing its economy.
Published Tuesday, a report by Søren Bjerregaard, head of securities and balance of payments at Danmarks Nationalbank, warned that there were “major challenges ahead” for Greenland’s economy.
The Arctic island’s economy — largely driven by the fishing industry — expanded by 0.8% in 2025 and is expected to grow a further 0.8% this year, down from 2% in 2022. According to the Danish central bank, the slowdown is likely to continue.
“The Greenlandic economy is slowing down, with modest growth and serious challenges for public finances,” Bjerregaard wrote.
