Denmark: Economy Overview

Denmark's 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.

Economy Overview

The Danish economy is also characterized by extensive government welfare measures, an equitable distribution of income, and comfortable living standards. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus. After a long consumption-driven upswing, Denmark's economy began slowing in early 2007 with the end of a housing boom. The global financial crisis has exacerbated this cyclical slowdown through increased borrowing costs and lower export demand, consumer confidence, and investment. The global financial crises cut Danish GDP by 0.9% in 2008 and 4.3% in 2009. Historically low levels of unemployment have risen sharply with the recession. Denmark is likely to make a slow and modest recovery, though unemployment is likely to rise through 2010. An impending decline in the ratio of workers to retirees will be a major long-term issue. Denmark maintained a healthy budget surplus for many years up to 2008, but the budget balance swung into deficit during 2009. Nonetheless, Denmark's fiscal position remains among the strongest in the EU. Despite previously meeting the criteria to join the European Economic and Monetary Union (EMU), so far Denmark has decided not to join, although the Danish krone remains pegged to the euro.

GDP (purchasing power parity):

$197.5 billion (2009 est.)
country comparison to the world: 52
$207.3 billion (2008 est.)
$209.1 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$310.1 billion (2009 est.)

GDP - real growth rate:

-4.7% (2009 est.)
country comparison to the world: 184
-0.9% (2008 est.)
1.7% (2007 est.)

GDP - per capita (PPP):

$35,900 (2009 est.)
country comparison to the world: 31
$37,800 (2008 est.)
$38,200 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 1.1%
industry: 22.2%
services: 76.7% (2009 est.)

Labor force:

2.841 million (2009 est.)
country comparison to the world: 106

Labor force - by occupation:

agriculture: 2.5%
industry: 20.2%
services: 77.3% (2005 est.)

Unemployment rate:

4.3% (2009 est.)
country comparison to the world: 40
3.4% (2008 est.)

Investment (gross fixed):

18.6% of GDP (2009 est.)
country comparison to the world: 109

Budget:

revenues: $172.5 billion
expenditures: $181.2 billion (2009 est.)

Inflation rate (consumer prices):

1.3% (2009 est.)
country comparison to the world: 55
3.4% (2008 est.)

Commercial bank prime lending rate:

NA

Stock of domestic credit:

$709.2 billion (31 December 2009)
country comparison to the world: 20
$695.8 billion (31 December 2008)

Agriculture - products:

barley, wheat, potatoes, sugar beets; pork, dairy products; fish

Industries:

iron, steel, nonferrous metals, chemicals, food processing, machinery and transportation equipment, textiles and clothing, electronics, construction, furniture and other wood products, shipbuilding and refurbishment, windmills, pharmaceuticals, medical equipment

Industrial production growth rate:

-11.5% (2009 est.)
country comparison to the world: 146

Oil - production:

262,100 bbl/day (2009 est.)
country comparison to the world: 40

Natural gas - production:

8.398 billion cu m (2009)
country comparison to the world: 43

Current account balance:

$12.43 billion (2009 est.)
country comparison to the world: 18
$7.009 billion (2008 est.)

Exports:

$91.51 billion (2009 est.)
country comparison to the world: 35
$114.7 billion (2008 est.)

Exports - commodities:

machinery and instruments, meat and meat products, dairy products, fish, pharmaceuticals, furniture, windmills

Exports - partners:

Germany 17.53%, Sweden 12.68%, UK 8.49%, US 6.05%, Norway 6.01%, Netherlands 4.84%, France 4.57% (2009)

Imports:

$84.46 billion (2009 est.)
country comparison to the world: 32
$115.4 billion (2008 est.)

Imports - commodities:

machinery and equipment, raw materials and semimanufactures for industry, chemicals, grain and foodstuffs, consumer goods

Imports - partners:

Germany 21.07%, Sweden 13.18%, Norway 7%, Netherlands 6.97%, China 6.22%, UK 5.53% (2009)

Debt - external:

$607.4 billion (30 June 2009)
country comparison to the world: 16
$588.8 billion (31 December 2008)

Stock of direct foreign investment - at home:

$144.6 billion (31 December 2009 est.)
country comparison to the world: 26
$136.9 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$186.6 billion (31 December 2009 est.)
country comparison to the world: 19
$171.1 billion (31 December 2008 est.)

Exchange rates:

Source: CIA - The World Factbook