Denmark: Economy#
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 lackluster 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 labor 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.
Economic Facts#
| GDP (purchasing power parity) | $264.8 billion (2016 est.) $262.2 billion (2015 est.) $259.6 billion (2014 est.) note: data are in 2016 dollars |
|---|---|
| GDP (official exchange rate) | $302.6 billion (2015 est.) |
| GDP - real growth rate | 1% (2016 est.) 1% (2015 est.) 1.3% (2014 est.) |
| GDP - per capita (PPP) | $46,600 (2016 est.) $46,300 (2015 est.) $46,100 (2014 est.) note: data are in 2016 dollars |
| Gross national saving | 26.3% of GDP (2016 est.) 26.6% of GDP (2015 est.) 27.6% of GDP (2014 est.) |
| GDP - composition, by end use | household consumption: 47.5% government consumption: 25.6% investment in fixed capital: 18.9% investment in inventories: 0.3% exports of goods and services: 50.8% imports of goods and services: -43.1% (2016 est.) |
| GDP - composition, by sector of origin | agriculture: 1.1% industry: 23.4% services: 75.5% (2016 est.) |
| 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 eq |
| Industrial production growth rate | 0.8% (2016 est.) |
| Labor force | 2.825 million (2016 est.) |
| Labor force - by occupation | agriculture: 2.6% industry: 20.3% services: 77.1% (2011 est.) |
| Unemployment rate | 4.2% (2016 est.) 4.6% (2015 est.) |
| Population below poverty line | 13.4% (2011 est.) |
| Household income or consumption by percentage share | lowest 10%: 1.9% highest 10%: 28.7% (2007) |
| Distribution of family income - Gini index | 24.8 (2011 est.) 24.7 (1992) |
| Budget | revenues: $156.9 billion expenditures: $164.5 billion (2016 est.) |
| Taxes and other revenues | 51.8% of GDP (2016 est.) |
| Budget surplus (+) or deficit (-) | -2.5% of GDP (2016 est.) |
| Public debt | 39.6% of GDP (2016 est.) 40.2% of GDP (2015 est.) note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as int |
| Fiscal year | calendar year |
| Inflation rate (consumer prices) | 0.4% (2016 est.) 0.5% (2015 est.) |
| Central bank discount rate | 0.75% (31 December 2011) 0.75% (31 December 2010) |
| Commercial bank prime lending rate | 3.7% (31 December 2016 est.) 3.42% (31 December 2015 est.) |
| Stock of narrow money | $148.1 billion (31 December 2016 est.) $151.9 billion (31 December 2015 est.) |
| Stock of broad money | $181.1 billion (31 December 2014 est.) $189.2 billion (31 December 2013 est.) |
| Stock of domestic credit | $619.8 billion (31 December 2016 est.) $632.9 billion (31 December 2015 est.) |
| Market value of publicly traded shares | $224.9 billion (31 December 2012 est.) $179.5 billion (31 December 2011 est.) $231.7 billion (31 December 2010 est.) |
| Current account balance | $20.34 billion (2016 est.) $20.75 billion (2015 est.) |
| Exports | $93.6 billion (2016 est.) $95.97 billion (2015 est.) |
| Exports - commodities | machinery and instruments, meat and meat products, dairy products, fish, pharmaceuticals, furniture, windmills |
| Exports - partners | Germany 17.8%, Sweden 11.6%, US 8.4%, Norway 6.3%, UK 6.3%, Netherlands 4.4%, China 4.2% (2015) |
| Imports | $82.29 billion (2016 est.) $85.02 billion (2015 est.) |
| Imports - commodities | machinery and equipment, raw materials and semimanufactures for industry, chemicals, grain and foodstuffs, consumer goods |
| Imports - partners | Germany 20.4%, Sweden 12.3%, Netherlands 8.1%, China 7.3%, Norway 6.1%, UK 4.4% (2015) |
| Reserves of foreign exchange and gold | $61.8 billion (31 December 2016 est.) $65.19 billion (31 December 2015 est.) |
| Debt - external | $484.8 billion (31 March 2016 est.) $519.8 billion (31 March 2015 est.) |
| Stock of direct foreign investment - at home | $135.1 billion (31 December 2016 est.) $133.3 billion (31 December 2015 est.) |
| Stock of direct foreign investment - abroad | $242.7 billion (31 December 2016 est.) $239.2 billion (31 December 2015 est.) |
| Exchange rates | Danish kroner (DKK) per US dollar - 6.865 (2016 est.) 6.7236 (2015 est.) 6.7236 (2014 est.) 5.6125 (2013 est.) 5.79 (2012 est.) |