What is seen is the narrower gulf between Denmark's rich and poor, and what is not seen is the toll this model takes on personal freedom. Consequently, the Danish krone is the only currency in the European Exchange Rate Mechanism II (ERM II). Significant investment has been made in building road and rail links between Copenhagen and Malm, Sweden (the resund Bridge), and between Zealand and Funen (the Great Belt Fixed Link). Many of the largest are interdisciplinary with business and sometimes research activities in several fields. [54] This is combined with education, skill development and work training programs. Of these, 20.9million are slaughtered in Denmark. Of these, 565,000 were dairy cows and 99,000 were suckler cows. They have had a "youth initiative" or the Danish Youth Unemployment Programme in place since 1996. In particular, the Danish national saving rate in financial assets increased by 11 per cent of GDP from 1980 to 2015. [103], In 2017 total output (gross value added) in manufacturing industries amounted to 14.4% of total output in Denmark. Other important U.S. exports to Denmark are military equipment, chemicals and pharmaceuticals, tobacco, wine, fresh vegetables, nuts, and forest products. Denmark is a long-standing member of the European Union; as such, it benefits from numerous trade (and other) policies which help to significantly boost the country's economy. The goal is a full independence of fossil fuels by 2050. [99] Denmark also has a small production of fox, chinchilla and rabbit furs.[98]. [69], In the first months of 2015, Denmark experienced the largest pressure against the fixed exchange rate for many years because of very large capital inflows, causing a tendency for the Danish krone to appreciate. With a turn-out of 87.6%, 53% of the voters rejected Danish membership. [31] Consequently, foreign trade has always been very important for the economic development of Denmark. Living in sweden while driving to work in Denmark is probably the ultimate luxury for the average welfare leeching underachiever of socialist scandinavia and this is the ultimate truth that I have concluded after living here for 20 years so whether or not you choose to believe this is entirely up to you. Placing it behind Luxembourg, the UK, Ireland, and Finland, but ahead of Germany, Italy, and France. Correcting for purchasing power, per capita income was Int$57,781 or 10th-highest globally. The Danish model of higher taxation and a more comprehensive, free, welfare state has both a cost and a benefit. According to the World Bank, gross national income per capita was the tenth-highest in the world at $55,220 in 2017. [104], In 2017 total output (gross value added) in service industries amounted to 75.2% of total output in Denmark,[6] and 79.9% of all employed people worked here (in 2016). Nyt fra Danmarks Statistik nr. English Summary", "SKTRYK: Tax level by national account groups", "LBESK02: EMPLOYEES (MONTH) BY SECTOR (2-GRP)", "Introducing Masters Unemployment Insurance Fund", "konomisk tilskud fra kommunen [financial support from the municipality]", "Sygedagpenge [Social benefits for the sick]", "F overblikket over dagpengereformen [Get an overview of the unemployment benefit reform]", "Table BDF11: Farms by region, unit, type of farms and area. Government consumption took up precisely 25% of GDP (e.g. In 2017, the share was at 13.3%, accounting for a total of DKK 12.1billion. Both of these industries are a major source of income and combined, they make up a quarter of all of Denmark's agricultural exports. This places unemployment in Denmark somewhat below the EU average, which was 7.6%. Official websites use .gov In 2015, average household assets were more than 600% of their disposable income, among OECD countries second only to the Netherlands. Prescription drugs are inexpensive and free for those under 18 years of age. Denmark invests heavily in active labor market policies and the concept of flexicurity has been important historically. It showed that high and stable trust in Denmark's health authorities was a key reason for the country's success. Denmark is famous for exporting milk and pork to European countries. The five countries from which Denmark imported most goods and services in 2017 were Germany, Sweden, the Netherlands, China and United Kingdom. 126, 23 March 2018. The Kingdom of Denmark also includes Greenland and the Faroe Islands. [97] Danish mink farmers claim their business to be sustainable, feeding the mink food industry waste and using all parts of the dead animal as meat, bone meal and biofuel. In 1994 active labour market policies were introduced that via a series of labour market reforms have helped reducing structural unemployment considerably. Sweden Tops 2016 Country RepTrak Reputation Ranking Approximately 90 percent of the production is exported. [69] Danmarks Nationalbank reacted in various ways, chiefly by lowering its interest rates to record low levels. This site contains PDF documents. Date 9 February 2015. Uniform commercial legislation in the Nordic countries dates to the 19th century. [58], The share of employees leaving jobs every year (for a new job, retirement or unemployment) in the private sector is around 30%[59] a level also observed in the U.K. and U.S.- but much higher than in continental Europe, where the corresponding figure is around 10%, and in Sweden. Instead, it is a country much like the U.S., where the. "Danske minkfarmere [Danish Mink Farmers]", "Danfoss Rejsen mod Engineering Tomorrow", "Danish Grundfos the world's largest pump group", "Table NABP69: 12.1.1 Production and generation of income (69-grouping) by transaction, industry and price unit. "Denmark Suspends Bond Issuance to Protect Krone's Peg", "Official interest rates. As Denmark's "embassy to the EU", its main task is to ensure that the country's . Denmark is a high-income, modern society with state-of-the-art infrastructure and distribution systems, a highly skilled labor force, and a central location that makes it an excellent distribution point for the Scandinavian, Northern European, and Baltic markets. Data retrieved 25 November 2018", "Denmark. From danmarkshistorien.dk, Aarhus University. In recent years, it was considered overly sustainable. Nowadays, it is of minor economic importance. Its score is 0.4 point lower than last year. Denmark ranks 10th most competitive economy in the world, according to the World Economic Forum's Global Competitiveness Report 2018. The material standard of living has experienced formerly unknown rates of growth, and the country has been industrialized and later turned into a modern service society. Danish income taxes are based on a progressive tax system, so if you make more than 61,500 euros (about $67,000) per year, an additional tax rate of 7 percent is added over this threshold . Foreign trade increased heavily relative to GDP. Information in English on website of Danish Economic Councils, retrieved 24 November 2018". Danmarks Nationalbank. Discusses key economic indicators and trade statistics, which countries are dominant in the market, and other issues that affect trade. [57], Altogether, total employment in 2017 amounted to 2,919,000 people according to Statistics Denmark. Export of dairy products accounts for more than 20 percent of the total Danish agricultural export. Denmark. The yearly number of slaughtering of beef cattle is around 550,000. Denmark houses a number of significant engineering and high-technology firms, within the sectors of industrial equipment, aerospace, robotics, pharmaceutical and electronics. have a non-negative fiscal sustainability indicator. 4.5% annually.[39]. U.S. Department of Commerce On top of this, Danes pay a 25 % value-added tax on most items, and a tax of up to 150 % on new cars. ", "Report for Selected Countries and Subjects", "Statistik for registrede andelsboligforeninger p andelsboligforeninger.com [Statistics for registered housing cooperatives at andelsboligforeninger.com]", Danmarks Nationalbank central bank of Denmark, Bureau of Public Affairs, U.S. Department of State, country overview for Denmark, World Bank Summary Trade Statistics Denmark, Dansk Arbejdsgiverforening Confederation of Danish Employers, Landsorganisationen i Danmark The Danish Confederation of Trade Unions, Anvendt Kommunal Forskning Danish Institute of Governmental Research, The Danish National Centre for Social Research, De konomiske Rds sekretariat Danish Economic Councils. Denmark, and to a lesser extent the other Nordic countries, are surfacing in the Democratic debates as examples of relatively equal societies that provide generous benefits for their citizens,. OECD's periodic surveys of the Danish economy. From danmarkshistorien.dk, Aarhus University. . [101], Denmark has large proven reserves of oil and natural gas in the North Sea with Esbjerg being the main city for the oil and gas industry. Confederation of Danish Industry, 18 June 2018. APDF readeris available from Adobe Systems Incorporated. There are more than 550 American subsidiaries established in Denmark and a strong American Chamber of Commerce with approximately 240 members. Energinet.dk is the Danish national transmission system operator for electricity and natural gas. [82] The tax structure of Denmark (the relative weight of different taxes) also differs from the OECD average, as the Danish tax system in 2015 was characterized by substantially higher revenues from taxes on personal income, whereas on the other hand, no revenues at all derive from social security contributions. Instead of creating policies where the rich can get richer at the expense of the poor, everyone tends to earn about the same amount. [116][117], Denmark has low electricity costs (including costs for cleaner energy) in EU,[119] but general taxes (11.7billion DKK in 2015)[118] make the electricity price for households the highest in Europe. [55] Such active labour market policies have been successful for Denmark in the short-term and the long-term. Brief from Danske Bank, published 24 March 2014. Moreover, Denmark is among the world leaders in wireless communications, internet and new media. Altogether, the amount of revenue from taxes paid in 2017 amounted to 46.1% of the GDP. Read More About DenmarkDenmark's economic freedom score is 77.6, making its economy the 9th freest in the 2023 Index. health care, child care and education services). Retrieved on 26 November 2018", "Unemployment by sex and age monthly average", "Net international investment position quarterly data,% of GDP", "Euro area and EU27 government deficit both at 0.6% of GDP", "Denmark's bilateral assistance to developing countries divided into main categories", "The AAA-rated club: which countries still make the grade? a combination of labour market flexibility and economic security for workers. Frre end 10.000 heltids-landbrug tilbage i Danmark. The most notable companies include: Many of the largest food producers are also engaged in biotechnology and research. USA.gov|FOIA|Privacy Program|EEO Policy|Disclaimer|Information Quality Guidelines |Accessibility, Official Website of the International Trade Administration, Comply with U.S. and Foreign Export Regulations. [114] Denmark has had relatively high energy taxation to encourage careful use of energy since the oil crises in the 1970s, and Danish industry has adapted to this and gained a competitive edge. According to data from Statistics Denmark, the Gini coefficient for disposable income has increased from 22.1 in 1987 to 29.3 in 2017. In 2017, the official Danish tax level amounted to 46.1% of GDP. On the other hand, Denmark has had a logistic advantage through its long coastal line and the fact that no point on Danish land is more than 50 kilometers from the sea an important fact for the whole period before the industrial revolution when sea transport was cheaper than land transport. These reasons cannot be described in a few sentences. Retrieved on 28 November 2018". Marking a break with decades of pro-privatization dogma, the bill is a small step toward an economy that serves social need, not just profits for shareholders. Denmark's economy is strong and stable because Danish companies enjoy tax advantages, favorable guidelines concerning R&D and depreciation, competitive labor charges, balanced foreign trade, and high-skilled qualified workers. Landbrugsavisen.dk published 12 October July 2017, retrieved 28 November 2018. In 2020, Poland's GDP contracted by "only" 3.5%, significantly less than the OECD average of 5.5%. Since February 2015, the central bank has maintained a negative interest rate to contain an upward exchange rate pressure. A relatively large proportion of the population is active on the labour market, not least because of a very high female participation rate. At the same time, average household gross debt was almost 300% of disposable income, which is also at the highest level in OECD. Since 2012, calculations of future fiscal challenges, from both the government and independent analysts, have generally perceived Danish fiscal policy to be sustainable. Finanspolitisk holdbarhed. The claim that Denmark is ranked the happiest country in the world due to its short workweeks, high minimum wage, and free university and health and child care is rated PARTLY FALSE, based on our. They spend about 11 percent of their GDP on health care. Denmark has a lot to offer, so you will find that there are plenty of pros to living in this beautiful country, whether it's in a major city or in the countryside. Small enterprises are dominant. [75][76] The government sector having a fair amount of financial assets as well as liabilities, government gross debt amounted to 36.1% of GDP at the same date. Although eligible, Denmark chose not to join the European Monetary Union when it was founded. [70], Inflation in Denmark as measured by the official consumer price index of Statistics Denmark was 1.1% in 2017. Greenland left the European Economic Community in 1986, and the Faroe Islands declined membership in 1973, when Denmark joined. There are also income transfers to various groups, such as retired or disabled people, unemployed persons, students, etc. Comparatively, Denmark is favorably positioned [92], Agriculture was once the most important industry in Denmark. There exists national accounting data for Denmark from 1820 onwards thanks to the pioneering work of Danish economic historian Svend Aage Hansen. According to IMD "Denmark reaches the top spot thanks to the quality of its economic policies during the pandemic and gains in international investments." Work-life balance makes Denmark a great place for employees At the end of the 18th century major agricultural reforms took place that entailed decisive structural changes. The extent of the support depends on the ability to work, and people below 40 can not receive social pension unless they are deemed incapable of any kind of work. [86] Not every Danish citizen or employee qualifies for a membership of an unemployment fund, and membership benefits will be terminated after 2 years of unemployment. Another important factor is gender equality, with Denmark ranked second in the EU in . The economy of Denmark is a modern mixed economy with comfortable living standards, a high level of government services and transfers, and a high dependence on foreign trade. The global Great Recession during the late 2000s, the accompanying Euro area debt crisis and their repercussions marked the Danish economy for several years. Maintenance of the fixed exchange rate is the responsibility of Danmarks Nationalbank, the Danish central bank. Correcting for purchasing power, income was Int$52,390 or 16th-highest among the 187 countries. Language links are at the top of the page across from the title. The import of organic products has always been higher than the exports though and reached DK 3.86billion in 2017. Website of Danmarks Nationalbank, date 14 June 2016. When grain production became less profitable in the second half of the century, the Danish farmers made an impressive and uniquely successful change from vegetarian to animal production leading to a new boom period. Date 6 July 2012. Being a small and open economy, Denmark has a long tradition of meeting the challenges posed by international integration and globalization, and has shown a capacity to enact needed reforms to reconcile an extensive welfare state with a well-functioning economy. [113] Since 1972, the overall energy consumption has dropped by 6%, even though the GDP has doubled in the same period. "Table EDP3: Denmark's EMU-debt and EMU-deficit by function (% of GDP)", "Table EDP2: EU-countries, public finances by country and function (in% of GDP)", "Denmarks Convergence Programme 2018. In 2017, 78.8% of all 15-to-64-year-old people were active on the labour market, the sixth-highest number among all OECD countries. Denmarks standard of living is among the highest in the world with a GDP per capita of $67,196 in 2021. Denmarks fiscal position is sound, and the country entered the global COVID-19 pandemic from a position of strength, highlighted by the Danish economy having a low fiscal deficit of 2.3 percent of GDP in 2021. [112], Since 2000, Denmark has increased gross domestic product (GDP) and at the same time decreased energy consumption. [40] A series of tax reforms from 1987 onwards, reducing tax deductions on interest payments, and the increasing importance of compulsory labour market-based funded pensions from the 1990s have increased private savings rates considerably, consequently transforming secular current account deficits to secular surpluses. There is an emphasis on achieving a desirable work-life balance. After the breakdown of the international Bretton Woods system in 1971, Denmark devalued the krone repeatedly during the 1970s and the start of the 1980s, effectively maintaining a policy of "fixed, but adjustable" exchange rates. It's Scandinavia's most cost-efficient location with favourable business conditions. Sick people can receive some financial support throughout the extent of their illness. Secondly, compulsory funded pension schemes became normal for most employees from the 1990s. The project surveyed more than 400,000 people in Denmark and seven other countries. Denmark has fostered and is home to many multi-national companies. [31] Parallelly industrialization took off in Denmark from the 1870s. Already during the Stone Age there was some foreign trade,[32] and even though trade has made up only a very modest share of total Danish value added until the 19th century, it has been decisive for economic development, both in terms of procuring vital import goods (like metals) and because new knowledge and technological skills have often come to Denmark as a byproduct of goods exchange with other countries. Among which are the high-performing Danish economy, attractive taxation schemes, flexible labour market, and collaborative work culture. Public expenditure is directed primarily toward health and social services, education, economic affairs, foreign affairs, and national defense. But, in fact, Denmark, separated from Sweden by a bridge, has been far more successful: Denmark's death rate from Covid-19 per million people is less than one-third of Sweden's, and . Economie suisse, umbrella organisation for the Swiss economy. A growing awareness that future demographic changes, in particular increasing longevity, could threaten fiscal sustainability, implying very large fiscal deficits in future decades, led to major political agreements in 2006 and 2011, both increasing the future eligibility age of receiving public age-related pensions. You Will Work Less. At first, the krone was pegged to the European Currency Unit or ECU, from 1987 to the Deutsche Mark, and from 1999 to the euro.[67]. On 6 February 2015 the certificates of deposit rate, one of the four official Danish central bank rates, was lowered to 0.75%. Fur ranked as Danish agriculture's third largest export article, at more than DKK 7billion annually. [37] They find that there has been a substantial and permanent, though fluctuating, economic growth all the time since 1820. The net government debt is very close to zero, amounting to 1.3% of GDP in 2017. Though eligible to join the Economic and Monetary Union of the European Union (EMU), the Danish voters in a referendum in 2000 rejected exchanging the krone for the euro. The agriculture and food sector as a whole represented 25% of total Danish commodity exports in 2015.