Denmark

ECONOMICS

Main Crops: Grain, potatoes, rape, sugar beets; beef, dairy products; fish

Natural Resources:
Petroleum, natural gas, fish, salt, limestone, stone, gravel and sand .

Major Industries: Food processing, machinery and equipment, textiles and clothing, chemical products, electronics, construction, furniture, and other wood products, shipbuilding

This thoroughly modern market economy features advanced industry with world-leading firms in pharmaceuticals, maritime shipping, and renewable energy, and a high-tech agricultural sector. Danes enjoy a high standard of living, and the Danish economy is characterized by extensive government welfare measures and an equitable distribution of income. An aging population will be a long-term issue.

Denmark’s small open economy is highly dependent on foreign trade, and the government strongly supports trade liberalization. Denmark is a net exporter of food, oil, and gas and enjoys a comfortable balance of payments surplus, but depends on imports of raw materials for the manufacturing sector.

Denmark is a member of the EU but not the eurozone. Despite previously meeting the criteria to join the European Economic and Monetary Union, Denmark has negotiated an opt-out with the EU and is not required to adopt the euro.

Denmark is experiencing a modest economic expansion. The economy grew by 2.0% in 2016 and 2.1% in 2017. The expansion is expected to decline slightly in 2018. Unemployment stood at 5.5% in 2017, based on the national labor survey. The labor market was tight in 2017, with corporations experiencing some difficulty finding appropriately-skilled workers to fill billets. The Danish Government offers extensive programs to train unemployed persons to work in sectors that need qualified workers.

Denmark maintained a healthy budget surplus for many years up to 2008, but the global financial crisis swung the budget balance into deficit. Since 2014 the balance has shifted between surplus and deficit. In 2017 there was a surplus of 1.0%. The government projects a lower deficit in 2018 and 2019 of 0.7%, and public debt (EMU debt) as a share of GDP is expected to decline to 35.6% in 2018 and 34.8% in 2019. The Danish Government plans to address increasing municipal, public housing and integration spending in 2018.

1990 2000 2010 2020
GNI, Atlas method (current US$) (billions) 125.29 173.98 339.65 365.72
GNI per capita, Atlas method (current US$) 24,370 32,580 61,220 62,720
GNI, PPP (current international $) (billions) 90.37 149.61 242.65 362.62
GNI per capita, PPP (current international $) 17,580 28,020 43,740 62,180
Poverty headcount ratio at national poverty lines (% of population) .. .. .. 10.1
Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population) 0 0 0 0
Income share held by lowest 20% .. .. 8.6 8.4
GDP (current US$) (billions) 138.25 164.16 322 355.18
GDP growth (annual %) 1.5 3.7 1.9 -2.7
Inflation, GDP deflator (annual %) 2.6 3 3.2 2.3
Agriculture, forestry, and fishing, value added (% of GDP) 3 2 1 1
Industry (including construction), value added (% of GDP) 23 24 20 21
Exports of goods and services (% of GDP) 36 45 51 54
Imports of goods and services (% of GDP) 31 38 44 48
Gross capital formation (% of GDP) 21 22 18 23
Revenue, excluding grants (% of GDP) 36.7 38.5 39.9 39.7
Net lending (+) / net borrowing (-) (% of GDP) -0.4 2 -2.6 3.6
States and markets
Time required to start a business (days) .. 8 6 4
Domestic credit provided by financial sector (% of GDP) .. .. .. ..
Tax revenue (% of GDP) 29.7 31.6 32.7 34
Military expenditure (% of GDP) 2 1.5 1.4 1.4
Mobile cellular subscriptions (per 100 people) 2.9 63 115.6 123.3
Individuals using the Internet (% of population) 0.1 39.2 88.7 96.5
High-technology exports (% of manufactured exports) .. .. 15 13
Statistical Capacity score (Overall average) .. .. .. ..
Global links
Merchandise trade (% of GDP) 51 59 56 58
Net barter terms of trade index (2000 = 100) .. 100 100 104
External debt stocks, total (DOD, current US$) (millions) .. .. .. ..
Total debt service (% of exports of goods, services and primary income) .. .. .. ..
Net migration (thousands) 65 46 107 76
Personal remittances, received (current US$) (millions) 464 667 925 1,495
Foreign direct investment, net inflows (BoP, current US$) (millions) 1,132 36,013 -11,768 -7,499
Net official development assistance received (current US$) (millions) .. .. .. ..