Denmark has raised its economic growth forecast for 2022, as a strong labor market will help the Scandinavian country’s economy weather most of the global headwinds, according to government documents seen by Bloomberg News and published on Thursday.

According to government documents, the country’s gross domestic product is likely to expand by 3.4 percent this year, an increase of 1.6 percent from the main scenario that the government expected last March.

The economy is set to grow by 1.9 percent next year, down from the 2.3 percent forecast by the Finance Ministry in March.