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):
$204.6 billion (2007 est.)

GDP (official exchange rate):
$268.8 billion (2007 est.)

GDP - real growth rate:
1.7% (2007 est.)

GDP - per capita (PPP):
$37,400 (2007 est.)

GDP - composition by sector:
agriculture: 1.6%
industry: 26.3%
services: 72.1% (2007 est.)

Labor force:
2.9 million (2007 est.)

Labor force - by occupation:
agriculture: 3%
industry: 21%
services: 76% (2004 est.)

Unemployment rate:
3.5% (2007 est.)

Population below poverty line:
NA%

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):
1.5% (2007 est.)

Investment (gross fixed):
23.2% of GDP (2007 est.)

Budget:
revenues: $167.9 billion
expenditures: $156.1 billion (2007 est.)

Public debt:
26.1% of GDP (2007 est.)

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:
1.5% (2007 est.)

Electricity - production:
43.35 billion kWh (2006)

Electricity - consumption:
34.02 billion kWh (2005)

Electricity - exports:
13.72 billion kWh (2006)

Electricity - imports:
6.77 billion kWh (2006)

Oil - production:
342,000 bbl/day (2006 est.)

Oil - consumption:
171,000 bbl/day (2006 est.)

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

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

Oil - proved reserves:
1.328 billion bbl (1 January 2006 est.)

natural gas - production:
9.87 billion cu m (2006 est.)

natural gas - consumption:
4.775 billion cu m (2005 est.)

natural gas - exports:
5.35 billion cu m (2005 est.)

natural gas - imports:
0 cu m (2005)

natural gas - proved reserves:
75.66 billion cu m (1 January 2006 est.)

Current account balance:
$4.699 billion (2007 est.)

Exports:
$102.1 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 14.2%, UK 8.8%, US 6.2%, Norway 5.5%, Netherlands 5.2%, France 4.9% (2006)

Imports:
$101.3 billion f.o.b. (2007 est.)

Imports - partners:
Germany 21.4%, Sweden 14.1%, Norway 6.5%, Netherlands 6.3%, UK 5.5%, China 5%, France 4.4% (2006)

Economic aid - donor:
ODA, $2.13 billion (2005)

Reserves of foreign exchange and gold:
$31.08 billion (2006 est.)

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

Stock of direct foreign investment - at home:
$138.4 billion (2006 est.)

Stock of direct foreign investment - abroad:
$150.1 billion (2006 est.)

Market value of publicly traded shares:
$178 billion (2005)

Currency (code):
Danish krone (DKK)

Exchange rates:
Danish kroner per US dollar - 5.4797 (2007), 5.9468 (2006), 5.9969 (2005), 5.9911 (2004), 6.5877 (2003)