Denmark Economy Facts: Learn Interesting Details About This Country
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Denmark stands 18th in the list of the world's most complex economies, reports Economic Complexity Index of 2019.
The service sector takes the majority share of the labor market in Denmark with 77.1%. The industrial market is second with 20.3%, followed by agriculture with 2.6%.
The country matches its exports with imports. Denmark's exports stood at $104 billion in 2019, occupying the 37th spot in the world's highest exporters list. On the other hand, Denmark's imports were $98.9 billion in 2019 and took 35th place in the world's highest importers list.
GDP Growth Rate Of Denmark
Denmark's economy has shown no signs of slowing down despite the aging population or the coronavirus pandemic, with its GDP or Gross Domestic Product (a measure of the economy's size) set to see a growth of 3.1% in 2022 and 2.1% in 2023.
In 2011, Denmark registered a GDP of $344 billion. Ten years later, in 2021, Denmark's GDP was $396.67 billion.
Even at the peak of the coronavirus pandemic in 2020, Denmark posted a GDP of $356.09b as compared to $347.56 billion in 2019.
In 1986, Denmark's GDP was $88.08 billion. The forecast of Denmark's GDP in 2026 is $508.76b.
Denmark registered GDP per capita of $63,645 in 2021 up from $53,254.86 in 2015.
National Income Of Denmark
Denmark has a relatively equitable distribution of income, aided by free Danish government projects such as medical and education.
In 2020, Denmark's gross national income or GNI per head was $58,439, the seventh highest in the world.
Income inequality has been the lowest in Denmark, but it has seen an increase over the past few decades. The Gini coefficient, a reliable statistical measure of income inequality, has jumped from 22.1 in 1987 to 29.3 in 2017 in Denmark.
Despite the increase in the Gini coefficient, it was the 20th lowest figure (29) among 156 countries in 2016. The Gini coefficient in Denmark in 2017 was the seventh-lowest among European Union countries.
Currency Of Denmark
Although a European country, Denmark does not use Euro.
Denmark's currency is Danish Krone, whose per unit is equivalent to $0.15 at the current market rates.
Danish Krone is also the currency of two more countries - Greenland and the Faroe Islands.
The currency is abbreviated as DKK. Its symbol is KR.
Biggest Industry In Denmark
Denmark hosts one of the biggest industries around the world.
Denmark's economy is majorly service sector, taking 77.1% of the total workforce, while the industrial market is second with 20.3%.
Although Denmark's industrial department attracts just one-fifth of the total workforce, the nature of industries served in the country varies, ranging from food processing, electronics, pharmaceuticals, shipbuilding, and tourism.
Other top leading industries in Denmark include clothing, furniture, iron and steel, construction, chemicals, medical equipment, and renewable energy such as wind turbines.
FAQs
Is Denmark a highly taxed nation?
A: Yes, Denmark taxes the highest in the European Union. In 2021, it was the highest tax nation in the EU with 55.9 %, followed by Greece with 54%, Belgium with 53%, and Sweden with 52.3%.
What is Denmark's minimum wage?
A: Denmark's minimum wage is DKK 110/hour or $18/hour. The yearly annual minimum wage in Denmark is $44,252. Any employer in Denmark who pays lower than the minimum wage could face punishment under the country's law.
Does Denmark have homeless people?
A: Yes, Denmark faces a social problem of homeless people, with the latest figures of 2019 suggesting 6431 Danes were homeless. However, the number of Danes who might be facing homeless at some point during the year could be double.
Is there poverty in Denmark?
A: Denmark reported a poverty rate of 0.30% in 2018, which is one of the lowest figures in the world. Danes living under $5.50 per day were categorized as poor. Denmark's poverty rate of 2018 was 10% less than that of the US in 2020.
What are Denmark's main exports?
A: Packaged medicament is the main export of Denmark, with $13.1 billion as per 2019 figures. It is followed by electric generating sets ($3.03 billion), pig meat ($2.86 billion) and refined petroleum ($2.39 billion).
They also exported vaccines, blood, toxins, and cultures. Denmark exported mostly to Germany ($14.6 billion), followed by the US ($11.3 billion) and Sweden ($10.3 billion) in 2019.
What is Denmark's biggest industry?
A: Processed foods, electronics, pharmaceuticals, shipbuilding, and tourism are some of the biggest and leading industries in Denmark. Other important industries in Denmark include clothing, furniture, iron and steel, construction, raw materials, chemicals, medical equipment, and wind turbines.
How stable is the economy in Denmark?
A: As per the 2021 Index of Economic Freedom, Denmark is ranked 10th, with a freedom score of 77.8. In Europe, it is ranked fifth, with the list topped by Switzerland.
Also, major agencies have rated the Denmark economy as AAA, stating it is strong and stable. At 2.8 % in November 2021, Denmark also has one of the lowest unemployment rates in Europe, taking the sixth spot.
Is the Danish economy strong?
A: Yes. In 2019, it was ranked 25th out of 146 countries in terms of economic complexities. It was ranked 37th in terms of GDP, 37th in exports, and 35th in imports in 2019 as per the Economic Complexity Index. Denmark reported the sixth highest GDP per capita in 2021 with $63,645, reflecting a higher standard of living.
Why is Denmark's economy so good?
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. Another important factor is gender equality, with Denmark ranked second in the EU in 2020.
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Sources
https://theodora.com/wfbcurrent/denmark/denmark_economy.html
https://borgenproject.org/poverty-in-denmark-3-facts-you-need-to-know/#:~:text=As of 2018 Denmark hadState's poverty rate in 2020.
https://www.forbes.com/places/denmark/
https://www.worldatlas.com/articles/the-economy-of-denmark.html
https://www.thelocal.dk/20210629/denmark-overtakes-france-as-most-high-tax-country-in-the-eu/
https://www.focus-economics.com/countries/denmark
https://www.usnews.com/news/best-countries/denmark
https://oec.world/en/profile/country/dnk
https://www.heritage.org/index/country/denmark#:~:text=Denmark's economic freedom score isthe regional and world averages.
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