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Denmark: country overview

31 May 2012
by Ina Dimireva -- last modified 30 January 2017

This thoroughly modern market economy features a high-tech agricultural sector, state-of-the-art industry with world-leading firms in pharmaceuticals, maritime shipping and renewable energy, and a high dependence on foreign trade. Denmark is a member of the EU; Danish legislation and regulations conform to EU standards on almost all issues. The most important sectors of Denmark's economy in 2015 were public administration, defence, education, human health and social work activities (23.1 %), wholesale and retail trade, transport, accommodation and food services (18.8 %) and industry (18.7 %). Denmark's main export partners are Germany, Sweden and the US, while its main import partners are Germany, Sweden and the Netherlands.


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Danish flag

Capital: Copenhagen

Geographical size: 42 924 km²

Population: 5 659 715 (2015)

Population as % of total EU: 1.1 % (2015)

Gross domestic product (GDP): € 266.244 billion (2015)

Official EU language(s): Danish

Political system: parliamentary constitutional monarchy

EU member country since: 1 January 1973

Seats in the European Parliament: 13

Currency: Danish krone DKK

Schengen area member? Yes, Schengen Area member since 25 March 2001.

Presidency of the Council: Denmark has held the revolving presidency of the Council of the EU 7 times between 1973 and 2012.

Denmark map

Country overview

Denmark consists of the peninsula of Jutland (Jylland) and some 400 named islands. Of these, 82 are inhabited, the largest being Funen (Fyn) and Zealand (Sjælland).

Denmark has a large fishing industry, and possesses a merchant fleet of considerable size. The manufacturing sector's main areas of activity include food products, chemicals, machinery, metal products, electronic and transport equipment, beer and paper and wood products. Tourism is also an important economic activity.

Between the 8th and 11th centuries, the Danes were known as the Vikings. Together with the Norwegians and Swedes, they colonised, raided and traded in all parts of Europe. Modern-day Danes pride themselves on their country's welfare state with its widespread social protection for everyone.

Denmark is a constitutional monarchy, ruled today under the 1953 constitution. The single-chamber parliament or Folketing has 179 elected members.

Among the best-known Danes are the writer Hans Christian Andersen, famous for his fairy tales, the author Karen Blixen and the designer Arne Jacobsen. Danish cinema has gained international recognition thanks largely to the experimental film director Lars von Trier.

Specialities of Danish cooking include smørrebrød (open sandwiches), boiled or sugar browned potatoes, boiled red cabbage, roast pork and roast duck.

Economy overview

This thoroughly modern market economy features a high-tech agricultural sector, advanced industry with world-leading firms in pharmaceuticals, maritime shipping and renewable energy, and a high dependence on foreign trade. 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. 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 major long-term issue. Denmark is a member of the EU; Danish legislation and regulations conform to EU standards on almost all issues. 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. Within the EU, Denmark is among the strongest supporters of trade liberalization.

After a long consumption-driven upswing, Denmark's economy began slowing in 2007 with the end of a housing boom. Housing prices dropped markedly in 2008-09 but, with significant regional differences, have since recovered. Household indebtedness is still relatively high at more than 305% of net disposable income in 2014, while household net worth - from private pension schemes and other assets - amounted to 546% of net disposable income.

The global financial crisis exacerbated this cyclical slowdown by increasing domestic borrowing costs and lowering foreign demand for Danish exports. Denmark maintained a healthy budget surplus for many years up to 2008, but the budget balance swung into deficit in 2009. The structural budget deficit has remained below 1% and is estimated at -0.4% in 2016. Denmark is experiencing a lacklustre economic recovery, having still not regained the GDP level of 2008. GDP contracted in 2012 and 2013, followed by real growth of 1.3% in 2014, and 1.2% in 2015. The government projects 1.9% growth in 2016, while private sector estimates are about 1% growth. A historically low level of unemployment rose with the economic downturn but the labour market has strengthened since 2013, and unemployment stood at about 4.5% in early 2016, based on the national measure. Productivity growth was significantly below the OECD average in 2012–2014.

Useful links

The Commission's Representation in Denmark

European Parliament office in Denmark

Danish Government

Tourist information

Practical information

Tax system in Denmark

European jobs portal (EURES)

Rights of EU citizens travelling in Europe

Life & business in the EU

Facts about Denmark for kids

Tourist information -Denmark

Source: European Commission, CIA - The World Factbook

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