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Denmark Economy Profile 2018

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Economy - overviewThis thoroughly modern market economy features a high-tech agricultural sector, advanced industry with world-leading firms in pharmaceuticals, maritime shipping, and in 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 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.

Denmark is experiencing a modest economic expansion. The economy grew by 1.7% in 2016 and an estimated 1.9% in 2017. The expansion is expected to continue at similar rates in 2018. The labor market has strengthened since 2013, and unemployment stood at 5.8% in 2017, based on the national measure. Productivity growth was significantly below the OECD average from the mid-1990s until 2011, but has increased in recent years. Improvement in productivity is needed to ensure continued growth.

Denmark maintained a healthy budget surplus for many years up to 2008, but the global financial crisis swung the budget balance into deficit. The 2017 deficit was 0.6%. The government projects a lower deficit in 2018, and public debt (EMU debt) as a share of GDP is expected to decline. In 2015, household indebtedness remained relatively high at more than 292% of net disposable income, while household net worth - from private pension schemes and other assets - amounted to 497% of net disposable income.
GDP (purchasing power parity)$285.5 billion (2017 est.)
$280.1 billion (2016 est.)
$275.4 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$324.1 billion (2016 est.)
GDP - real growth rate1.9% (2017 est.)
1.7% (2016 est.)
1.6% (2015 est.)
GDP - per capita (PPP)$49,600 (2017 est.)
$49,100 (2016 est.)
$48,700 (2015 est.)
note: data are in 2017 dollars
Gross national saving27.9% of GDP (2017 est.)
28.2% of GDP (2016 est.)
28.9% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 48%
government consumption: 25.2%
investment in fixed capital: 20%
investment in inventories: -0.2%
exports of goods and services: 54.5%
imports of goods and services: -47.5% (2017 est.)
GDP - composition by sectoragriculture: 1.1%
industry: 23.7%
services: 75.2% (2017 est.)
Population below poverty line13.4% (2011 est.)
Labor force2.998 million (2017 est.)
Labor force - by occupationagriculture: 2.4%
industry: 18.3%
services: 79.3% (2016 est.)
Unemployment rate5.8% (2017 est.)
6.2% (2016 est.)
Unemployment, youth ages 15-24total: 12%
male: 13.1%
female: 10.9% (2016 est.)
Household income or consumption by percentage sharelowest 10%: 1.9%
highest 10%: 28.7% (2007)
Distribution of family income - Gini index28.8 (2015 est.)
25.7 (2005 est.)
Budgetrevenues: $173.5 billion
expenditures: $175.5 billion (2017 est.)
Taxes and other revenues53.5% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-0.6% of GDP (2017 est.)
Public debt35.1% of GDP (2017 est.)
37.7% of GDP (2016 est.)
note: data cover general government debt, and includes 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 intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
Inflation rate (consumer prices)1% (2017 est.)
0.3% (2016 est.)
Central bank discount rate0.05% (2016)
0.05% (2015)
Commercial bank prime lending rate2.9% (31 December 2017 est.)
3.25% (31 December 2016 est.)
Stock of narrow money$191.5 billion (31 December 2017 est.)
$159.3 billion (31 December 2016 est.)
Stock of broad money$201.8 billion (31 December 2017 est.)
$173.4 billion (31 December 2016 est.)
Stock of domestic credit$739.9 billion (31 December 2017 est.)
$637.3 billion (31 December 2016 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.)
Agriculture - productsbarley, wheat, potatoes, sugar beets; pork, dairy products; fish
Industriesiron, 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 rate2% (2017 est.)
Current Account Balance$23.61 billion (2017 est.)
$24.09 billion (2016 est.)
Exports$113.2 billion (2017 est.)
$103.6 billion (2016 est.)
Exports - commoditiesmachinery and instruments, meat and meat products, dairy products, fish, pharmaceuticals, furniture and design, windmills
Exports - partnersGermany 16.3%, Sweden 11.9%, US 8.2%, UK 6.5%, Norway 6.1%, Netherlands 5.1%, China 4.4% (2016)
Imports$94.61 billion (2017 est.)
$86.39 billion (2016 est.)
Imports - commoditiesmachinery and equipment, raw materials and semimanufactures for industry, chemicals, grain and foodstuffs, consumer goods
Imports - partnersGermany 21.4%, Sweden 12.2%, Netherlands 8%, China 7.3%, Norway 5.5%, UK 4.2% (2016)
Reserves of foreign exchange and gold$68.8 billion (31 December 2017 est.)
$64.25 billion (31 December 2016 est.)
Debt - external$484.8 billion (31 March 2016 est.)
$519.8 billion (31 March 2015 est.)
Stock of direct foreign investment - at home$145.9 billion (31 December 2017 est.)
$147.9 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$248 billion (31 December 2017 est.)
$235.4 billion (31 December 2016 est.)
Exchange ratesDanish kroner (DKK) per US dollar -
6.586 (2017 est.)
6.7309 (2016 est.)
6.7309 (2015 est.)
6.7236 (2014 est.)
5.6125 (2013 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

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