Denmark's economy is expected to grow by 2.8% this year, down from a previous forecast of 3.4%, the country's finance ministry said on Wednesday.

Next year, GDP is seen growing 0.8% compared to the 1.9% the forecasted in May, the ministry said in an economic report.

"Even though uncertainty and unpredictability has become a regular travelling companion, the Danish economy stands with firm ground under its feet," Finance Minister Nicolai Wammen said, referring to healthy public finances and low unemployment.

"We are well placed to weather a period of rising prices and more limited growth," Wammen said in the report.

The ministry expects inflation of 7.3% this year, up from its May forecast of 5.2%, and 3.3% next year. (Reporting by Stine Jacobsen and Jacob Gronholt-Pedersen, editing by Terje Solsvik)