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The Economy of Denmark

Danish Economy

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Economy - overview: This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, a stable currency, and high dependence on foreign trade. Unemployment is low and capacity constraints limit growth potential. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus. The government has been successful in meeting, and even exceeding, the economic convergence criteria for participating in the third phase (a common European currency) of the European Economic and Monetary Union (EMU), but so far Denmark has decided not to join 15 other EU members in the euro. Nonetheless, the Danish krone remains pegged to the euro. Denmark's fiscal position is among the strongest in the EU. Economic growth gained momentum in 2004 and the upturn continued through 2006. After a long consumption-driven upswing, Denmark's economy began slowing in early 2007 with the end of a housing boom. This cyclical slowdown has been exacerbated by the global financial crisis through increased borrowing costs and lower export demand, consumer confidence, and investment. The slowing global economy cut growth to 0.3% in 2008. Because of high GDP per capita, welfare benefits, a low Gini index, and political stability, the Danish living standards are among the highest in the world. A major long-term issue will be the sharp decline in the ratio of workers to retirees.

GDP:

GDP - real growth rate: -0.6% (2008 est.) 1.6% (2007 est.) 3.3% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 1.4% industry: 25.9% services: 72.7% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2% highest 10%: 24% (2000 est.)

Distribution of family income - Gini index: 24 (2005)

Inflation rate (consumer prices):

Labor force: 2.86 million (2008 est.)

Labor force - by occupation: agriculture: 2.9% industry: 23.8% services: 72.7% (2005 est.)

Unemployment rate: 2% (2008 est.)

Budget: revenues: $192 billion expenditures: $177.6 billion (2008 est.)

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: 0.4% (2008 est.)

Electricity - production: 36.99 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 34.68 billion kWh (2006 est.)

Electricity - exports: 11.38 billion kWh (2007 est.)

Electricity - imports: 10.43 billion kWh (2007 est.)

Oil - production: 313,800 bbl/day (2007 est.)

Oil - consumption: 190,600 bbl/day (2007 est.)

Oil - exports: 320,000 bbl/day (2006)

Oil - imports: 164,000 bbl/day (2006 est.)

Oil - proved reserves: 1.188 billion bbl (1 January 2008 est.)

Natural gas - production: 9.223 billion cu m (2007 est.)

Natural gas - consumption: 4.555 billion cu m (2007 est.)

Natural gas - exports: 4.517 billion cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 70.51 billion cu m (1 January 2008 est.)

Agriculture - products: barley, wheat, potatoes, sugar beets; pork, dairy products; fish

Exports: $119.5 billion f.o.b. (2008 est.)

Exports - commodities: machinery and instruments, meat and meat products, dairy products, fish, pharmaceuticals, furniture, windmills

Exports - partners: Germany 17.4%, Sweden 14.5%, UK 8%, US 6.1%, Norway 5.7%, France 4.8%, Netherlands 4.8% (2007)

Imports: $120.7 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, raw materials and semimanufactures for industry, chemicals, grain and foodstuffs, consumer goods

Imports - partners: Germany 21.6%, Sweden 14.4%, Netherlands 7.1%, Norway 6%, China 5.4%, UK 5.3%, Italy 4.1%, France 4% (2007)

Debt - external: $492.6 billion (30 June 2007)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Danish kroner (DKK) per US dollar - 5.0236 (2008 est.), 5.4797 (2007), 5.9468 (2006), 5.9969 (2005), 5.9911 (2004)

Fiscal year: