Denmark

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Economics

Economy - overview

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 European Union (EU); Danish legislation and regulations conform to EU standards on almost all issues. Danes enjoy among the highest standards of living in the world and the Danish economy is characterized by extensive government welfare measures and an equitable distribution of income. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus, but depends on imports of raw materials for the manufacturing sector. 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. 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 5.2% in 2009. Historically low levels of unemployment rose sharply with the recession but remain below 5%, based on the national measure, about half the level of the EU; harmonized to OECD standards the unemployment rate was about 8% at the end of 2010. Denmark made a modest recovery in 2010 in part because of increased government spending. 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 2009-10. 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):

$201.7 billion (2010 est.)

country comparison to the world: 53

$197.7 billion (2009 est.)

$208.5 billion (2008 est.)

note: data are in 2010 US dollars

 

GDP (official exchange rate):

$310.8 billion (2010 est.)

 

GDP - real growth rate:

2.1% (2010 est.)

country comparison to the world: 144

-5.2% (2009 est.)

-1.1% (2008 est.)

 

GDP - per capita (PPP):

$36,600 (2010 est.)

country comparison to the world: 28

$35,900 (2009 est.)

$38,000 (2008 est.)

note: data are in 2010 US dollars

 

GDP - composition by sector:

agriculture: 1.2%

industry: 22.1%

services: 76.7% (2010 est.)

 

Labor force:

2.852 million (2010 est.)

country comparison to the world: 103

 

Labor force - by occupation:

agriculture: 2.5%

industry: 20.2%

services: 77.3% (2005 est.)

 

Unemployment rate:

6% (2010 est.)

country comparison to the world: 56

4.7% (2009 est.)

 

Population below poverty line:

12.1% (2007)

 

Household income or consumption

by percentage share:

lowest 10%: 1.9%

highest 10%: 28.7% (2007)

 

Distribution of family income - Gini index:

29 (2007)

country comparison to the world: 122

24.7 (1992)

 

Investment (gross fixed):

16.8% of GDP (2010 est.)

country comparison to the world: 153

 

Budget:

revenues: $171.7 billion

expenditures: $180.7 billion (2010 est.)

 

Taxes and other revenues:

55.3% of GDP (2010 est.)

country comparison to the world: 14

 

Budget surplus (+) or deficit (-):

-2.9% of GDP (2010 est.)

country comparison to the world: 94

 

Public debt:

43.7% of GDP (2010 est.)

country comparison to the world: 62

41.8% of GDP (2009 est.)

 

Inflation rate (consumer prices):

2.3% (2010 est.)

country comparison to the world: 73

1.3% (2009 est.)

 

Central bank discount rate:

0.75% (31 December 2010 est.)

country comparison to the world: 131

1% (31 December 2009 est.)

 

Commercial bank prime lending rate:

4.3% (31 December 2010 est.)

country comparison to the world: 160

5.3% (31 December 2009 est.)

 

Stock of narrow money:

$146.8 billion (31 December 2010 est.)

country comparison to the world: 25

$158.1 billion (31 December 2009 est.)

 

Stock of broad money:

$174.9 billion (31 December 2010 est.)

country comparison to the world: 40

$197.1 billion (31 December 2009 est.)

 

Stock of domestic credit:

$672.9 billion (31 December 2010 est.)

country comparison to the world: 21

$713 billion (31 December 2009 est.)

 

Market value of publicly traded shares:

$231.7 billion (31 December 2010)

country comparison to the world: 30

$186.9 billion (31 December 2009)

$131.5 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:

1.6% (2010 est.)

country comparison to the world: 137

 

Electricity - production:

34.15 billion kWh (2009 est.)

country comparison to the world: 61

 

Electricity - consumption:

33.41 billion kWh (2008 est.)

country comparison to the world: 57

 

Electricity - exports:

10.88 billion kWh (2009 est.)

 

Electricity - imports:

333 million kWh (2009 est.)

 

Oil - production:

247,500 bbl/day (2010 est.)

country comparison to the world: 39

 

Oil - consumption:

167,500 bbl/day (2010 est.)

country comparison to the world: 61

 

Oil - exports:

266,700 bbl/day (2009 est.)

country comparison to the world: 45

 

Oil - imports:

173,900 bbl/day (2009 est.)

country comparison to the world: 55

 

Oil - proved reserves:

812 million bbl (1 January 2011 est.)

country comparison to the world: 41

 

Natural gas - production:

8.171 billion cu m (2010 est.)

country comparison to the world: 45

 

Natural gas - consumption:

4.948 billion cu m (2010 est.)

country comparison to the world: 60

 

Natural gas - exports:

3.52 billion cu m (2010 est.)

country comparison to the world: 31

 

Natural gas - imports:

138 million cu m (2010 est.)

country comparison to the world: 69

 

Natural gas - proved reserves:

58.13 billion cu m (1 January 2011 est.)

country comparison to the world: 63

 

Current account balance:

$17.08 billion (2010 est.)

country comparison to the world: 16

$11.07 billion (2009 est.)

 

Exports:

$96.58 billion (2010 est.)

country comparison to the world: 35

$92.24 billion (2009 est.)

 

Exports - commodities:

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

 

Exports - partners:

Germany 17.6%, Sweden 13.8%, UK 8.1%, US 5.9%, Norway 5.6%, Netherlands 4.8%, France 4.7% (2010)

 

Imports:

$87.44 billion (2010 est.)

country comparison to the world: 33

$84.16 billion (2009 est.)

 

Imports - commodities:

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

 

Imports - partners:

Germany 21.1%, Sweden 13.7%, Netherlands 7.3%, China 6.8%, UK 6.1%, Norway 5.5% (2010)

 

Reserves of foreign exchange and gold:

$76.52 billion (31 December 2010 est.)

country comparison to the world: 25

$76.65 billion (31 December 2009 est.)

 

Debt - external:

$559.5 billion (30 June 2010)

country comparison to the world: 19

$588.8 billion (31 December 2008)

 

Stock of direct foreign investment - at home:

$139.7 billion (31 December 2010 est.)

country comparison to the world: 26

$140.4 billion (31 December 2009 est.)

 

Stock of direct foreign investment - abroad:

$183 billion (31 December 2010 est.)

country comparison to the world: 20

$180.1 billion (31 December 2009 est.)

 

Exchange rates:

Danish kroner (DKK) per US dollar -

5.624 (2010)

5.361 (2009)

5.0236 (2008)

5.4797 (2007)

5.9468 (2006)