Dánsko
Traditionally a merchant nation with Viking roots; excelling in pharmaceutics, renewable energy and shipping.
Total area: 43,094 sq km
Population: 5.9 million
Government type: Constitutional monarchy with a parliamentary system
Administrative division: 5 regions (called “regioner”)
Capital + other major cities: Copenhagen (1.3 million) + Aarhus (290,000), Odense (182,000), Aalborg (120,000)
Currency: Danish krone (DKK)
Language: Danish (official)
Ethnicity: Danish 84.2%, Turkish 1.1%, other 14.7% (Polish, Romanian, Syrian, etc.)
Religion: Lutheran (71.4%), Muslim (4.3%), none or unspecified (24.3%)
King: Frederik X.
Prime Minister: (Ms.) Mette Frederiksen (since 27 June 2019)
Date of EU accession: 1973
KEY FEATURES
- Robust welfare state
- Least corrupt country in the world according to the Corruption Perceptions Index
- Boasts one of the oldest Constitutions
- Leader in the flexicurity approach towards the labor market
- World’s largest exporter of fish products
- Danish Krone pegged to the euro
- Ranked among the top 3 most competitive countries in the world
MACROECONOMIC OVERVIEW
Denmark consistently ranks among the top ten countries in the world in terms of GDP per capita, combining a high standard of living, a robust welfare system, and strong economic performance. Despite recovering well from the Covid-19 pandemic, the country faced challenges due to supply chain disruptions and higher inflation, which constrained economic growth. In 2023, GDP growth was driven by robust pharmaceutical and large shipping sectors, although higher-than-usual inflation suppressed private consumption and investment. Future growth is projected to remain subdued.
Economists are concerned that the Danish economy is becoming too dependent on the performance of a single company, Novo Nordisk, recalling the so-called “Nokia effect” that occurred in Finland a few years ago. Statistics have shown that the Danish economy grew by 1.9% in 2023 mainly due to Novo Nordisk’s economic success; without it, Danish economic growth would have stagnated. The potential over-reliance on Novo Nordisk is therefore a risk, highlighting the need for diversified economic growth strategies.
Selected economic indicators, Denmark, 2017 - 2023
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| GDP |
|
|
|
|
|
|
|
|
| Real GDP growth |
%
|
2.8 | 2.0 | 1.5 | -2.4 | 6.8 | 2.7 | 1.9 |
| GDP at current prices |
€ bn
|
294.8 | 302.3 | 309.5 | 311.4 | 342.9 | 380.6 | 373.7 |
| Foreign trade |
|
|
|
|
|
|
|
|
| Exports |
€ bn
|
162.3 | 170.9 | 181.5 | 171.6 | 201.3 | 266.5 | 257.9 |
| Imports |
€ bn
|
141.2 | 152.4 | 159.6 | 151.4 | 178.3 | 224.2 | 222.1 |
| Balance |
€ bn
|
21.1 | 18.5 | 21.8 | 20.1 | 22.9 | 42.2 | 35.7 |
| Prices |
|
|
|
|
|
|
|
|
| CPI – average inflation rate |
%
|
1.1 | 0.7 | 0.7 | 0.3 | 1.9 | 8.5 | 3.4 |
| PPI – industry – average |
%
|
3.3 | 6.4 | -0.6 | -4.8 | 25.2 | 47.0 | -0.5 |
| Employment |
|
|
|
|
|
|
|
|
| Registered unemployment |
%
|
5.8 | 5.1 | 5.0 | 5.6 | 5.1 | 4.5 | 5.1 |
| Average monthly gross wage |
€
|
4,843 | 4,909 | 4,988 | 5,083 | 5,210 | 5,394 | |
| Exchange rates* |
|
|
|
|
|
|
|
|
| USD/DKK average (DKK per USD) |
|
6.6 | 6.3 | 6.6 | 6.5 | 6.2 | 7.0 | 6.8 |
| Currency board fixed rate: EUR/DKK |
|
7.4
|
7.4 | 7.4 | 7.4 | 7.4 | 7.4 | 7.4 |
Source: IMF, OECD, World Bank, Eurostat, ECB, 2017-2023
* For the current exchange rate, please see www.xe.com
KEY SECTORS
Denmark boasts a highly competitive and resilient economy with significant strengths in pharmaceuticals, shipping, and renewable energy.
Pharmaceutical industry
The pharmaceutical industry is a cornerstone of Denmark's economy, highlighted by Novo Nordisk, a global leader in obesity and diabetes drugs. The company alone employs more than 64,000 worldwide of which 23,000 people are located in Denmark. Other important industry players, such as Lundbeck or Coloplast, have significantly lower sales. Pharmaceutical products accounts for 20% of all exports.
Shipping and Maritime industry
As a traditional merchant and shipping nation, Denmark is home to the world’s largest container shipping operator, Maersk, a leader in shipping and logistics. Shipping is one of Denmark's largest export industries, comprising approximately 27% of Denmark's total exports and employing 27,500 people.
Renewable Energy and Cleantech
Denmark is a global leader in renewable energy, particularly in wind power. Nearly half of Denmark's electricity comes from wind, and companies like Vestas and Ørsted are global leaders in wind turbine production. The Danish wind industry employs more than 33,000 people reflecting Denmark's commitment to sustainability and green innovation.
Food industry
Despite its small size, Denmark is known for its food exports, particularly in dairy products, pork, and organic foods, with Arla Foods and Danish Crown playing major roles in the sector. Food processing companies are usually owned cooperatively by farmers. The agricultural sector contributes 22% to the total Danish exports and is known for high productivity and intensive research and innovation. Denmark is a frontrunner in organic food production and consumption, with around 12% of Danish farmland cultivated organically.
EXPORTS & IMPORTS
Denmark is the most open to international trade of all the Nordic countries, with a GDP/export ratio of 69%. The main trading partners are the other Nordic and EU countries.
2023 export and import data:
Main import partners:
Germany – 18.8%
Sweden – 11.5%
Norway – 10%
Netherlands – 8.9%
China – 6.1%
Main export partners:
Special Categories – 22.2%
Germany – 13.1%
Sweden – 7.9%
Netherlands – 5.5%
Norway – 5%
USA – 4.7%
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