Dinamarca flag Dinamarca: Visió econòmica i política

El context econòmic de Dinamarca

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Being a small country with an open economy and a structural balance of payments surplus, Denmark– although prosperous - is highly dependent on foreign trade. This is why the country has been severely affected immediately after the outbreak of the COVID-19 pandemic. Nevertheless, Denmark proved relatively resilient to the pandemic-related challenges, growing at a strong pace following the lifting of most restrictions. A rapid rebound in private consumption as the economy reopened saw GDP and employment exceed their pre-crisis levels, with growth estimated at 3.8% in 2021 (IMF). In 2022, domestic demand is expected to be bolstered by increased private spending and investment, while the foreign sector should also contribute to growth. The IMF forecasts a growth of 3%, followed by 1.9% in 2023. However, uncertainty remains due to the recrudescence of the COVID-19 virus.

The country’s public accounts are quite healthy, with one of the lowest debt-to-GDP ratios in Europe: although the measures taken by the government to address the pandemic led to an increase, in 2021 the country’s debt burden resumed a gradually declining path (38.8%, from 42.1% one year earlier), which is expected to continue in 2022 (38.5% - IMF). 2021 also saw an increase in the general government budget balance, estimated at -0.9%. Nevertheless, thanks to the phasing-out of emergency measures and strong revenue growth owing to the continued expansion, the budget is expected to turn positive as from 2022 (1.4% according to the EU Commission, although the IMF has a more conservative view – at -0.1%). Consumer prices have accelerated sharply in 2021, fuelled by an upswing in energy prices and increases in tobacco excise taxes. Inflation stood at 1.4%, and growing domestic demand is set to contribute to higher consumer prices over the forecast period (1.6% this year and 1.8% in 2023 – IMF).

The Danish economy is characterized by an equitable distribution of income and extensive government welfare measures, with one of the highest GDP per capita in the world (USD 61,478 PPP in 2021, IMF). The unemployment rate remained relatively low even during the peak of the pandemic, and stood at 5.4% in 2021 when a sharp increase in employment has caused recruitment problems in several sectors. In fact, Denmark experiences endemic labour shortages, which are projected to ease to a certain degree due to the growing labour force driven by a rise in the number of workers from other EU countries and the gradual increase in the retirement age. The IMF forecasts a continued decrease in the unemployment rate, projected at 5.3% this year and 5.1% in 2023.

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 347.56e356.09396.67414.55436.62
GDP (Constant Prices, Annual % Change) 2.1-2.13.83.01.9
GDP per Capita (USD) 59,862e61,154e67,92070,76974,314
General Government Balance (in % of GDP) 1.3-0.9-2.1-0.2-0.1
General Government Gross Debt (in % of GDP) 33.642.138.838.538.7
Inflation Rate (%) 0.70.31.93.82.1
Unemployment Rate (% of the Labour Force) 5.05.6e5.45.35.1
Current Account (billions USD) 30.4229.34e27.6028.3529.24
Current Account (in % of GDP) 8.88.27.06.86.7

Source: IMF – World Economic Outlook Database, October 2021

Note: (e) Estimated Data

Main Sectors of Industry

The agricultural sector only accounts for 1.3% of the GDP and employs 2% of the population (World Bank, latest data available). Approximately 60% of the Danish land is used for agriculture, and there are more than 50,000 farmers in the country, which is a major exporter of agricultural products (meat, fish, and dairy, among others). Denmark produces enough food to feed 17 million people, three times its population. Nearly 90% of the country's agricultural revenue comes from livestock production. The organic market in Denmark is proportionally the biggest in the world, with organic food making up 12.8% of the total retail food market (Statistics Denmark).

Industry employs around 19% of the active population and contributes 21.2% of GDP. The major activity sectors are the chemical, pharmaceutical and biotechnology industries, with niche industries in renewable energy and biotechnology. Denmark has limited natural resources, a fact that slows down the development of its heavy industry. However, the country has enough oil and gas reserves to ensure its energy independence. Uranium mining has been authorised to begin in the autonomous Danish territory of Greenland. Denmark is the world's leading manufacturer of wind turbines and exports the vast majority of its production. According to the latest data by the World Bank, manufacturing accounts for 14% of the country’s GDP.

The services sector contributes almost three-quarters of GDP (64.6%) and employs the largest share of the population (79.2%). Denmark has a strong banking sector, characterised by a high degree of concentration: domestic banks own more than 85% of the total assets, and three banks control 50% of total assets. The tourism sector is becoming a growing source of income for the country, although the sector has been severely hit by the COVID-19 pandemic. Trade and transport services are also important for the country’s economy (Denmark is the world’s fifth-largest shipping operator).

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.2 18.5 79.2
Value Added (in % of GDP) 1.3 21.2 64.6
Value Added (Annual % Change) 6.1 -0.7 -3.0

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

Find more information about your business sector on our service Market Reports.

 
 

Find out all the exchange rates daily on our service Currency Converter.

 

Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:
77,8/100
World Rank:
10
Regional Rank:
5

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

Business environment ranking

Definition:

The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

Score:
8.32/10
World Rank:
6/82

Source: The Economist Intelligence Unit - Business Environment Rankings 2021-2025

 

Country Risk

See the country risk analysis provided by Coface.
 

Return to top

 

Return to top

Vols fer algun comentari sobre aquest contingut? Escriu-nos.

 

© Export Entreprises SA, Tots els drets reservats.
Actualitzacions: September 2022

Return to top