Global InformationEconomy of Denmark information
 Copenhagen | |
| Currency | Danish krone (DKK, kr) |
|---|---|
Fiscal year | calendar year |
Trade organisations | EU, WTO, OECD and others |
Country group |
|
| Statistics | |
| Population | 5,961,249 (January 2024)[3] |
| GDP |
|
| GDP rank |
|
GDP growth |
|
GDP per capita |
|
GDP per capita rank |
|
GDP by sector |
|
Inflation (CPI) | 4.8% (2023)[4] |
Population below poverty line |
|
Gini coefficient | 27.5 low (2019)[8] |
Human Development Index |
|
Labour force |
|
Labour force by occupation |
|
| Unemployment |
|
Average gross salary | DKK 45,482 / €6,107 monthly (2021) |
Average net salary | DKK 30,971 / €4,159 monthly (2021) |
Main industries | wind turbines, pharmaceuticals, medical equipment, shipbuilding and refurbishment, iron, steel, nonferrous metals, chemicals, food processing, machinery and transportation equipment, textiles and clothing, electronics, LEGO, construction, furniture and other wood products |
| External | |
| Exports | $234.2 billion (2021)[16] |
Export goods | wind turbines, pharmaceuticals, machinery and instruments, meat and meat products, dairy products, fish, furniture and design |
Main export partners |
|
| Imports | $208.1 billion (2021 est.)[16] |
Import goods | machinery and equipment, raw materials and semimanufactures for industry, chemicals, grain and foodstuffs, consumer goods |
Main import partners |
|
FDI stock |
|
Current account | $32.4 billion (2021 est.)[16] |
Gross external debt | $484.8 billion (2016)[16] |
Net international investment position | 64.6% of GDP (1 July 2018)[17] |
| Public finances | |
Government debt |
|
Budget balance |
|
| Revenues | 53.3% of GDP (2019)[18] |
| Expenses | 49.6% of GDP (2019)[18] |
| Economic aid |
|
Credit rating |
|
Foreign reserves | $75.25 billion (2017)[16] |
All values, unless otherwise stated, are in US dollars. | |
The economy of Denmark is a modern high-income and highly developed mixed economy. The economy of Denmark is dominated by the service sector with 80% of all jobs, whereas about 11% of all employees work in manufacturing and 2% in agriculture. The nominal gross national income per capita was the ninth-highest in the world at $68,827 in 2023.
Correcting for purchasing power, per capita income was Int$57,781 or 10th-highest globally.[23] The income distribution is relatively equal but inequality has somewhat increased during the last decades.[24] In 2017, Denmark had the seventh-lowest Gini coefficient (a measure of economic inequality) of the then 28 European Union countries.[25] With 5,932,654 inhabitants (1 January 2023),[26] Denmark has the 38th largest national economy in the world measured by nominal gross domestic product (GDP), and the 52nd largest in the world measured by purchasing power parity (PPP).
Denmark has a very long tradition of adhering to a fixed exchange-rate system and still does so today. It is unique among OECD countries to do so while maintaining an independent currency: The Danish krone, which is pegged to the euro.[27] Though eligible to join the EU's Economic and Monetary Union (EMU), Danish voters in a referendum in 2000 rejected exchanging the krone for the euro. Whereas Denmark's neighbours like Norway, Sweden, Poland and the United Kingdom generally follow inflation targeting in their monetary policy, the priority of Denmark's central bank is to maintain exchange rate stability. Consequently, the central bank has no role in a domestic stabilization policy. Since February 2015, the central bank has maintained a negative interest rate to contain an upward exchange rate pressure.
In an international context, a relatively large proportion of the population is part of the labour force, in particular because the female participation rate is very high. In 2017, 78.8% of all 15-to-64-year-old people were active on the labour market, the sixth-highest number among all OECD countries. With a 4.8% unemployment rate, unemployment is relatively low, in comparison to other European countries where the average unemployment rate is 6.7%.[28] The labour market is traditionally characterized by a high degree of union membership rates and collective agreement coverage. Denmark invests heavily in active labor market policies and the concept of flexicurity has been important historically.
Denmark is an example of the Nordic model, characterized by an internationally high tax level, and a correspondingly high level of government-provided services (e.g. health care, child care and education services). There are also income transfers to various groups, such as retirees, disabled people, the unemployed, and students. Altogether, the amount of revenue from taxes paid in 2017 amounted to 46.1% of GDP. The Danish fiscal policy is generally considered healthy. The net government debt is very close to zero, amounting to 1.3% of GDP in 2017. The Danish fiscal policy is characterized by a long-term outlook, taking into account likely future fiscal demands. During the 2000s, a challenge was perceived to government expenditures in future decades. It was ultimately a challenge to fiscal sustainability from demographic development, in particular higher longevity. Responding to this, age eligibility rules for receiving public age-related transfers were changed. Since 2012, calculations of future fiscal challenges, from both the government and independent analysts, have generally perceived Danish fiscal policy to be sustainable. In recent years, it was considered overly sustainable.
- ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
- ^ "Population on 1 January". ec.europa.eu/eurostat. Eurostat. Retrieved 17 June 2022.
- ^ a b c d e f "Report for Selected Countries and Subjects: April 2023". imf.org. International Monetary Fund.
- ^ Cite error: The named reference
nabp10was invoked but never defined (see the help page). - ^ "Poverty rate". data.oecd.org. OECD. Retrieved 29 November 2019.
- ^ "People at risk of poverty or social exclusion". ec.europa.eu/eurostat. Eurostat. Retrieved 5 March 2020.
- ^ "Gini coefficient of equivalised disposable income – EU-SILC survey". ec.europa.eu/eurostat. Eurostat. Retrieved 5 March 2020.
- ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 15 October 2022.
- ^ Nations, United. "Inequality-adjusted HDI (IHDI)". hdr.undp.org. UNDP. Retrieved 15 October 2022.
- ^ "Labor force, total – Denmark". data.worldbank.org. World Bank. Retrieved 24 November 2023.
- ^ "Employment rate by sex, age group 20–64". ec.europa.eu/eurostat. Eurostat. Retrieved 29 May 2019.
- ^ Cite error: The named reference
ras300was invoked but never defined (see the help page). - ^ "Unemployment by sex and age – monthly average". appsso.eurostat.ec.europa.eu/eurostat. Eurostat. Retrieved 4 October 2020.
- ^ "Unemployment rate by age group". data.oecd.org. OECD. Retrieved 7 September 2020.
- ^ a b c d e f g h i "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 12 March 2024.
- ^ Cite error: The named reference
niipwas invoked but never defined (see the help page). - ^ a b c d e f "Euro area and EU27 government deficit both at 0.6% of GDP" (PDF). ec.europa.eu/eurostat. Eurostat. Archived (PDF) from the original on 4 June 2020. Retrieved 28 April 2020.
- ^ "Archived copy" (PDF). Archived (PDF) from the original on 25 December 2017. Retrieved 25 December 2017.
{{cite web}}: CS1 maint: archived copy as title (link) - ^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011.
- ^ Monaghan, A. (15 October 2014). "The AAA-rated club: which countries still make the grade?". The Guardian. Retrieved 10 June 2018.
- ^ "Scope affirms Denmark's AAA rating with Stable Outlook". Scope Ratings. Retrieved 30 September 2023.
- ^ Cite error: The named reference
wbwas invoked but never defined (see the help page). - ^ Cite error: The named reference
DECF16was invoked but never defined (see the help page). - ^ Cite error: The named reference
eurostatwas invoked but never defined (see the help page). - ^ Statistikbanken.dk/10021:Befolkning og valg/(table)FOLK1AM
- ^ Eichengreen, Barry (2023). "The Danish problem". Economia Politica. 40 (3): 781–794. doi:10.1007/s40888-023-00313-y. ISSN 1973-820X.
- ^ "Harmonised unemployment rate by gender". Eurostat. Retrieved 1 December 2018.