Economy - overview:
This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, an equitable distribution of income, comfortable living standards, a stable currency, a stable political system, 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 16 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 GDP by 1.2% in 2008. A major long-term issue will be the sharp decline in the ratio of workers to retirees.
GDP (purchasing power parity):
$204.1 billion (2008 est.) country comparison to the world: 52 $206.6 billion (2007 est.)
$203.3 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate):
$340 billion (2008 est.)
GDP - real growth rate:
-1.2% (2008 est.) country comparison to the world: 209 1.6% (2007 est.)