Denmark

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

After strong growth in 2004-2006, the Danish economy slowed down in 2007, mainly because of the rise in interest rates and the shrinkage of the housing market, which contributed to depressing the consumers and consequently caused a reduction in investment. The country was strongly hit by the financial crisis due to its high degree of openness to international trade and to the high level of financialization of its economy. Domestic consumption demand decreased significantly in 2009. The number of bankrupt companies literally exploded (more than 60% over the period of 2008-2009), with the resulting unemployment practically doubling the unemployment rate over the same period.
Denmark's economy also suffers from relatively low productivity. The costs of employment are high but the number of working hours is low and there are many active adults receiving income benefits. Reforms in the past years have been aimed at promoting the human capital and encouraging late retirement.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	274.11	310.50	342.93	290.12	290.38
GDP (constant prices, annual % change)	3.3	1.6	-1.1e	-4.0	0.4
GDP per capita (USD)	50,509	57,004	62,626e	52,815	52,700e
General government balance (in % of GDP)	5.0	4.5	3.0e	-2.0	-4.8
Inflation rate (%)	1.9	1.7	3.4e	-0.3	-0.0
Unemployment rate (% of the labor force)	3.9	2.7	1.7	3.2	4.5
Current Account (billions USD)	7.91	2.21	1.85e	-3.39e	-3.11e
Current Account (in % of GDP)	2.9	0.7	0.5	-1.2e	-1.1e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The agricultural sector only accounts for almost 2% of the GDP. Nevertheless, Denmark has become one of the major exporters of agricultural products. Two-thirds of the 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 freedom. The major activity sectors are: chemical and pharmaceutical, biotechnology and services (approximately three-fourths of the GDP). Denmark is the world's leading manufacturer of wind turbines and exports 85% of its production.

The services sector contributes nearly three-fourths of the GNP. However, the country was heavily affected by the international crisis and the number of companies going bankrupt in this sector exploded in 2008-2009.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	2.9	23.8	72.7
Value added (in % of GDP)	1.3	25.7	73.0
Value added (annual % change)	-2.7	0.5	2.7

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Danish kroner (DKK) - Average annual exchange rate for 1 USD	5.99	6.00	5.95	5.44	5.10

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 79.6/100
Position:: mostly free
World Rank:: 8 out of 179
Regional Rank:: 2 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The trade balance deteriorated sharply in 2008, when high domestic demand led to an imbalance in favor of imports. Additionally, export earnings will no longer benefit from the high international oil prices (Denmark is a net exporter of oil and gas) because of the sharp drop of Brent prices. As a result, the trade balance and current account balance have remained in the red in 2009.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	54,840	65,524	75,153	87,671	100,836
Exports of goods (millions USD)	64,537	75,050	82,486	90,570	100,449
Imports of services (millions USD)	28,254	33,401	37,002	45,123	53,889
Exports of services (millions USD)	31,672	36,304	43,371	51,961	61,608
Imports of goods and services (annual % change)	-1.6	7.7	11.2	14.1	5.6
Exports of goods and services (annual % change)	-0.9	2.8	8.2	9.0	3.7
Imports of goods and services (in % of GDP)	39.1	40.5	44.3	49.1	51.0
Exports of goods and services (in % of GDP)	45.4	45.4	49.2	51.8	52.1
Trade Balance (millions USD)	9,697	9,527	7,333	2,899	-386
Trade Balance (including service) (millions USD)	13,116	12,430	13,702	9,736	7,333
Foreign trade (in % of GDP)	84.5	85.9	93.5	101.0	103.1

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Germany	17.5%
Sweden	14.6%
United Kingdom	8.4%
Norway	6.0%
United States	5.5%
France	4.4%
Netherlands	4.4%
Italy	3.1%
Spain	2.7%
Finland	2.6%
Poland	2.4%
Japan	2.0%
China	1.9%
Russia	1.9%
Belgium	1.5%
Ireland	1.2%
Canada	1.0%
Hong Kong	0.9%
Switzerland	0.9%
Czech Republic	0.8%
See more countries	48.0%

Main suppliers (% of imports)	2008
Germany	21.2%
Sweden	14.2%
Netherlands	6.9%
China	5.9%
United Kingdom	5.2%
Norway	4.7%
Italy	3.9%
France	3.7%
Belgium	3.5%
United States	3.2%
Poland	2.8%
Finland	2.3%
Russia	1.7%
Spain	1.7%
Austria	1.1%
Czech Republic	1.0%
Ireland	1.0%
Turkey	1.0%
Switzerland	0.9%
Hungary	0.8%
See more countries	46.7%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	14.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	11.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	8.7%
Pharmaceutical productsPharmaceutical products	6.5%
Meat and edible meat offalMeat and edible meat offal	4.6%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	4.1%
Articles of iron or steelArticles of iron or steel	3.0%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.8%
Plastics and articles thereofPlastics and articles thereof	2.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	2.7%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	2.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	2.1%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.9%
Iron and steelIron and steel	1.8%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	1.4%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	1.3%
Miscellaneous chemical productsMiscellaneous chemical products	1.3%
Ships, boats and floating structuresShips, boats and floating structures	1.3%
Glass and glasswareGlass and glassware	1.3%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	1.2%
Organic chemicalsOrganic chemicals	1.2%
Aluminium and articles thereofAluminium and articles thereof	1.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.0%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.9%
Furskins and artificial fur; manufactures thereofFurskins and artificial fur; manufactures thereof	0.8%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.8%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.8%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Live animalsLive animals	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.6%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.6%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.4%
CerealsCereals	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.3%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Rubber and articles thereofRubber and articles thereof	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and extracts	0.2%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Ceramic productsCeramic products	0.2%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.1%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Man-made filamentsMan-made filaments	0.1%
See more products	54.6%

Main imports (% of imports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.6%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	8.0%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	8.0%
Plastics and articles thereofPlastics and articles thereof	4.3%
Iron and steelIron and steel	3.5%
Articles of iron or steelArticles of iron or steel	3.4%
Pharmaceutical productsPharmaceutical products	2.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	2.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	2.0%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.8%
Ships, boats and floating structuresShips, boats and floating structures	1.8%
Aluminium and articles thereofAluminium and articles thereof	1.4%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.3%
Meat and edible meat offalMeat and edible meat offal	1.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.0%
Organic chemicalsOrganic chemicals	1.0%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Rubber and articles thereofRubber and articles thereof	0.8%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.8%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.8%
Glass and glasswareGlass and glassware	0.8%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.6%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.6%
CerealsCereals	0.6%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.6%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.6%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
FertilizersFertilizers	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.5%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.5%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.4%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.3%
Ceramic productsCeramic products	0.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.3%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Arms and ammunition; parts and accessories thereofArms and ammunition; parts and accessories thereof	0.2%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Furskins and artificial fur; manufactures thereofFurskins and artificial fur; manufactures thereof	0.2%
Man-made filamentsMan-made filaments	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.2%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and extracts	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.1%
See more products	56.5%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Economic and Business Affairs
Ministry of Finance
Ministry of Food, Agriculture and Fisheries
Statistical Office: Statistics Denmark
Central Bank: Danish National Bank
Stock Exchange: Copenhagen Stock Exchange
Search Engines: Altavista.dk
Excite
Jubii
Yahoo!
Economic portals: The Economist

Political outline

Executive Power: The Monarch is the head of the state and theoretically holds all executive powers. But in reality the executive powers are exercised on behalf of the monarch by the Prime Minister.
Legislative Power: Following legislative elections, the leader of the majority party or the leader of the majority coalition is usually appointed Prime Minister by the monarch for a four-year term. The cabinet, called Council of State, is appointed by the Monarch on Prime Minister's recommendation.
The legislature is unicameral. The parliament called People's Assembly has the ultimate legislative authority; its members are elected by popular vote on the basis of proportional representation to serve four-year terms. On a vote of no confidence motion the parliament may force the entire government to resign.
Main political parties: Denmark has a multi-party system, with the following four parties as major political parties:
- Liberal Party a social liberal party, advocates major reforms in country's education & tax systems;
- Social Democratic Party follows social-democratic ideology, supports public spending on healthcare, education and infrastructure;
- Conservative People's Party a conservative centre-right political party;
- SF (Socialist People's Party) follows popular-socialism inspired by socialism and green politics.
Current political leaders: Monarch: Queen Margrethe II (since January 1972); heir apparent Crown Prince FREDERIK
Prime Minister: Anders Fogh Rasmussen (since November 2001, re-elected in February 2005) – Liberal Party, heading a coalition government with Conservative People's Party.
Next election dates: Parliamentary: November 2011

Indicator of freedom of the press

World Rank:: 15/173
Evolution:: 7 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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