Economy Denmark
Economy - overview:
The Danish economy is undergoing strong expansion fueled by private
consumption growth, low unemployment, rising real wages, and a
strong increase in house prices. 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. 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 Denmark has decided
not to join 12 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 2006. Because of high GDP per
capita, welfare benefits, a low Gini index, and political stability,
the Danish people enjoy living standards topped by no other nation.
A major long-term issue will be the sharp decline in the ratio of
workers to retirees.
GDP (purchasing power parity):
$198.5 billion (2006 est.)
GDP (official exchange rate):
$256.3 billion (2006 est.)
GDP - real growth rate:
3% (2006 est.)
GDP - per capita (PPP):
$37,000 (2006 est.)
GDP - composition by sector: agriculture: 1.4% industry: 24.6% services: 74% (2006 est.)
Labor force: 2.91 million (2006 est.)
Labor force - by occupation: agriculture: 3% industry: 21% services: 76% (2004 est.)
Unemployment rate:
4.5% (2006 est.)