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Denmark - Overview

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Introduction

Capital:: Copenhagen
Area:: 43 km2
Total Population:: 5.592
Annual growth rate:: 0.00%
Density:: 132.00/km2
Urban population:: 87%
Population of Copenhagen (1.096), Arhus (240), Odense (160), Aalborg (100), Esbjerg (70)
Official language: Danish is the official language of Denmark, Greenland and the Faeroe Islands. Both Greenland and the Faeroe Islands have their own languages too which most of the people speak, but Danish is used for official purposes and taught in schools.
Other languages spoken: English is the predominant second language. Small minorities, mostly in Southern Denmark, speak German.
Business language: Yes. Danes are generally very used to using English and especially business people and government agencies.
Ethnic Origins:: Scandinavian, Inuit, Faroese, German, Turkish, Iranian, Somali
Beliefs: Protestants 91%, Catholics 2%, Others 7%.
Telephone codes:
To make a call from: 0
To make a call to: +45
Internet suffix:: .dk
Type of State::
Denmark (official name: Kingdom of Denmark) is a constitutional monarchy based on parliamentary democracy.
Type of economy::
High-income economy, OECD member
6th in the world in terms of GDP per capita; The economy suffers from a relatively low productivity

Economic overview

The country was strongly hit by the 2009 financial crisis, due to its high degree of openness to international trade and to the high level of financialization of its economy. The recovery has been only slight. Economic growth stalled in 2013 (0.1%). An economic recovery is expected in 2014, with growth estimates of around 1.7%, driven by private consumption stimulated by rising available revenue and a low level of inflation.

The year 2013 was a period of economic adjustment after the overheating suffered by the real estate market and the labor market. Mid-term, the government is committed to improving the state finances, yet its short-term policies are likely to deepen the deficit, which now represents 1.7% of the GDP. An increase in public spending in key areas, especially healthcare, will lead to budget cults in other sectors. "Green" taxation will increase.Other government objectives are improving the quality and effectiveness of public services, increasing workforce supply, promoting green technologies and maintaining a competitive environment in the areas of research and development.

Denmark is a wealthy country, its per capita GDP figures among the highest in the world and its social inequalities are small. The unemployment rate remains low (7%) compared to the rest of Europe.

Main industries

The agricultural sector only accounts for 1.2% of the GDP and employs merely 2.4% of the population. Nevertheless, Denmark has become one of the major exporters of agricultural products. Two-thirds of its agricultural production is 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 independence. Denmark is the world's leading manufacturer of wind turbines and exports 85% of its production. The major activity sectors are: chemical, pharmaceutical and biotechnological industries.

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

Uranium mining has recently been authorised to begin in the autonomous Danish territory of Greenland.

Foreign trade overview

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

The trade balance is structurally positive. Due to the resumption of exports and the downward trend in imports, the trade surplus increased in 2013, a trend which should continue in 2014.

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

FDI

The level of FDI in Denmark is far below the country's potential and tends to stagnate. Since 2012-2013, FDI flows have been decreasingbecause of the euro zone crisis. They should recover slightly in 2014.

The country's strengths include: a highly skilled and multilingual workforce, flexible labor market, ultramodern infrastructure (telecommunications, transport, etc.) and tax incentives for businesses.

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