Denmark



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Denmark Economy 2008


Economy - overview: The Danish economy has in recent years undergone strong expansion fueled primarily by private consumption growth, but also supported by exports and investments. 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 are limiting growth potential. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus. Government objectives include streamlining the bureaucracy and further privatization of state assets. 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. Economic growth gained momentum in 2004 and the upturn continued through 2007. The controversy over caricatures of the Prophet Muhammad printed in a Danish newspaper in September 2005 led to boycotts of some Danish exports to the Muslim world, especially exports of dairy products, but the boycotts did not have a significant impact on the overall Danish economy. 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 (purchasing power parity): $203.3 billion (2007 est.)
GDP (official exchange rate): $311.9 billion (2007 est.)
GDP - real growth rate: 1.7% (2007 est.)
GDP - per capita (PPP): $37,200 (2007 est.)
GDP - composition by sector: agriculture: 1.3% industry: 25.7% services: 73% (2007 est.)
Labor force: 2.86 million (2007 est.)
Labor force - by occupation: agriculture: 3% industry: 21% services: 76% (2004 est.)
Unemployment rate: 2.8% (2007 est.)
Household income or consumption by percentage share: lowest 10%: 2% highest 10%: 24% (2000 est.)
Distribution of family income - Gini index: 24 (2005)
Investment (gross fixed): 22.9% of GDP (2007 est.)
Budget: revenues: $170.6 billion expenditures: $156.8 billion (2007 est.)
Public debt: 26% of GDP (2007 est.)
Inflation rate (consumer prices): 1.7% (2007 est.)
Central bank discount rate: 4% (31 December 2007)
Commercial bank prime lending rate: NA
Stock of money: $148.7 billion (31 December 2007)
Stock of quasi money: $81.64 billion (31 December 2007)
Stock of domestic credit: $684.7 billion (31 December 2007)
Agriculture - products: barley, wheat, potatoes, sugar beets; pork, dairy products; fish
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: 0.5% (2007 est.)
Electricity - production: 36.99 billion kWh (2007 est.)
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.)
Current account balance: $4.279 billion (2007 est.)
Exports: $101.2 billion f.o.b. (2007 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: $102 billion f.o.b. (2007 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)
Reserves of foreign exchange and gold: $34.32 billion (2006 est.)
Debt - external: $492.6 billion (30 June 2007)
Stock of direct foreign investment - at home: $149.7 billion (2007 est.)
Stock of direct foreign investment - abroad: $166.6 billion (2007 est.)
Market value of publicly traded shares: $178 billion (2005)
Currency (code): Danish krone (DKK)
Exchange rates: Danish kroner (DKK) per US dollar - 5.4797 (2007), 5.9468 (2006), 5.9969 (2005), 5.9911 (2004), 6.5877 (2003)

NOTE: The economy information regarding Denmark on this page is re-published from the 2008 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Denmark Economy 2008 information contained here. All suggestions for corrections of any errors about Denmark Economy 2008 should be addressed to the CIA.