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flag Denmark Denmark: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

The country was strongly hit by the financial crisis, due to its high degree of openness to international trade and to the high level of financialization of its economy. However, profiting from the resumption of trade, Denmark has experienced a more dynamic economic recovery than its European neighbors. GDP growth is estimated at 2% in 2010.

Fiscal and social measures adopted by the government in order to mitigate the effects of the crisis have destabilized public finances. Government’s priority in 2011, which was defined as part of a consolidation plan, is to lower the budget deficit by decreasing spending and increasing revenue.

Structural reforms are also planned. Denmark's economy suffers from relatively low productivity. The costs of employment are high but the number of working hours is low and there are many active adults receiving income benefits. The goal has been therefore to promote the human capital and encourage late retirement. Faced with the depletion of its petrol and natural gas reserves, the country has also set itself ambitious goals in terms of its energetic policy.

Denmark is a wealthy country, its per capita GDP figures among the highest in the world and its social inequalities are small. Although the unemployment rate remains low on European scale, it has clearly increased following the economic recession.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 308.93309.87e349.12e362.58370.40
GDP (Constant Prices, Annual % Change) -5.21.7e1.5e1.51.7
GDP per Capita (USD) 56,05255,986e63,00365,25066,475
General Government Balance (in % of GDP) -0.3-1.6e-0.8-0.5-0.4
General Government Gross Debt (in % of GDP) 41.843.7e44.345.847.0
Inflation Rate (%) 1.32.33.2e2.42.2
Unemployment Rate (% of the Labor Force) 3.64.24.54.44.0
Current Account (billions USD) 11.6015.72e22.3023.1622.67
Current Account (in % of GDP) 3.85.1e6.46.1-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector only accounts for 1.3% of the GDP and employs merely 2.7% of the population. Nevertheless, Denmark has become one of the major exporters of agricultural products. Two-thirds of its agricultural production are exported. Most of the Danish land is used for agriculture and there are more than 50,000 farmers in Denmark. Nearly 90% of the country's agricultural revenue comes from livestock production.

Denmark has limited natural resources, a fact which slows down the development of its heavy industry. However, the country has enough oil and gas reserves to ensure its energy freedom. Denmark is the world's leading manufacturer of wind turbines and exports 85% of its production. The major activity sectors are: chemical and pharmaceutical, biotechnology and services (approximately three-fourths of the GDP).

The services sector contributes nearly three-fourths of the GDP and provides most employment.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.5 20.3 77.1
Value Added (in % of GDP) 0.9 22.5 76.6
Value Added (Annual % Change) 19.7 -11.1 -3.0

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Danish kroner (DKK) - Average Annual Exchange Rate For 1 USD 5.955.445.105.365.62

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Denmark on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
78.6/100
Position:
Mostly free
World Rank:
8/179
Regional Rank:
3/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Historically a nation of traders, Denmark's economy is extremely open to the outside. Trade represents more than 100 of the GDP.

The trade balance is structurally positive, a tendency which was only strengthened by the combined effects of a decrease in imports linked to a lower domestic demand and the recovery of internation trade. 

Denmark's main trade partners are Germany, Sweden, the Netherlands, UK, USA and China.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 85,50798,027109,98182,65084,432
Exports of Goods (million USD) 92,558103,011116,56793,91697,211
Imports of Services (million USD) 44,23552,89361,39849,59448,988
Exports of Services (million USD) 51,51560,66271,56154,17057,815
Imports of Goods and Services (Annual % Change) 13.44.32.7-12.5-
Exports of Goods and Services (Annual % Change) 9.03.7---
Imports of Goods and Services (in % of GDP) 48.949.951.944.1-
Exports of Goods and Services (in % of GDP) 52.152.255.147.9-
Trade Balance (million USD) 3,0483919198,1038,990
Trade Balance (Including Service) (million USD) 10,1248,35911,02012,53817,035
Foreign Trade (in % of GDP) 101.0102.2107.091.9-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 15.0%
Sweden 12.8%
United Kingdom 7.5%
Norway 6.1%
United States 5.3%
See More Countries 53.5%
Main Suppliers
(% of Imports)
2010
Germany 20.6%
Sweden 13.4%
China 7.5%
Netherlands 7.1%
United Kingdom 6.0%
See More Countries 45.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 4.5%
Meat of swine, fresh, chilled or frozenMeat of swine, fresh, chilled or frozen 3.2%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.9%
Electric generating sets and rotary convertersElectric generating sets and rotary converters 1.7%
See More Products 84.7%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.7%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.4%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.1%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 1.9%
See More Products 84.5%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Economic and Business Affairs
Ministry of Finance
Ministry of Food, Agriculture and Fisheries
Statistical Office
Statistics Denmark
Central Bank
Danish National Bank
Stock Exchange
Copenhagen Stock Exchange
Search Engines
Altavista.dk
Excite
Jubii
Yahoo!
Economic Portals
The Economist

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Political Outline

Executive Power
The Monarch is the head of the state and theoretically holds all executive powers. But in reality the executive powers are exercised on behalf of the monarch by the Prime Minister.
Legislative Power
Following legislative elections, the leader of the majority party or the leader of the majority coalition is usually appointed Prime Minister by the monarch for a four-year term. The cabinet, called Council of State, is appointed by the Monarch on Prime Minister's recommendation. 
The legislature is unicameral. The parliament called People's Assembly has the ultimate legislative authority; its members are elected by popular vote on the basis of proportional representation to serve four-year terms. On a vote of no confidence motion the parliament may force the entire government to resign.
Main Political Parties
Denmark has a multi-party system, with the following four parties as major political parties:
- Liberal Party – a social liberal party, advocates major reforms in country's education & tax systems;
- Social Democratic Party – follows social-democratic ideology, supports public spending on healthcare, education and infrastructure;
- Conservative People's Party – a conservative centre-right political party;
- SF (Socialist People's Party) – follows popular-socialism inspired by socialism and green politics.
Current Political Leaders
Monarch: Queen Margrethe II (since January 1972); heir apparent Crown Prince FREDERIK
Prime Minister: Helle THORNING-SCHMIDT since 3 October 2011  – Socialdemokraterne (Social Democrats).
Next Election Dates
Parliamentary: September, 2015.
 

Indicator of Freedom of the Press

World Rank:
11/178
Evolution:
10 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012