General data Denmark

 

Market overview
The Danish market economy is characterised as modern and features high-tech agriculture, extensive government welfare measures, comfortable living standards, a stable currency up-to-date small-scale and corporate industry, and high dependence on foreign trade.

Denmark is a net exporter of food and energy and enjoys a comfortable balance of payment surplus. Government objectives include streamlining the bureaucracy and further privatization of state assets. Denmark has decided not to join 12 other EU members in the euro. The Danish crone remains pegged to the euro. Given the sluggish state of the European economy growth rate in Denmark was approx. 2% in 2004. 

Area: 41,526 sq km (16,033 sq miles).
700 sq km (1,429 sq miles) waterways, lakes and inland seas.
Population:  

5,4 million inhabitants.

Capital:     Copenhagen Other three main cities Aarhus and Odense.
Administrative divisions: Odense. 14 counties (amter) and 2 boroughs (amtskommuner)
Administrative languages: 

Danish.

Religions: 95% Evangelical Lutheran, other Protestant and Roman Catholic, Muslin 2%. 
Currency:  DKK

Economic conditions
Since 1997 Denmark has achieved budget surpluses on a regular basis (approx. 1.3% of GNP in 2003), which have been used to systematically reduce the national debt. The national debt was down to just 43% of GNP in 2003. A reason why Denmark's surplus only was Euro 5.6 billion in 2003 is among other reasons, due to the fact that intereston Denmark's net foreign debt and also expenditure on foreign aid are deducted from the export suplus of Euro 11.9 billion. 

The Ministry of Finance predicts inflation to fall to 1.7% in 2005 partly because the Government will not be raising excise duties further. Danske Bank is more cautious citing 2% inflation on the basis of higher oil prices.

Unemployment in March 2004 stood at 6.5%, which was also the average for 2001. Unemployment figures declined again from the second half of 2004 and onwards as a result of the economic upturn. Denmark has the lowest unemployment rate in Europe.

Market Sectors
In percentage of GDP the three main industries in Denmark are:

  • Services    71%
  • Industry    26%
  • Agriculture  3%

In 2003 Danish exports totalled almost Euro 58 billion, corresponding to 31% of the GDP. 66% of Danish exports are to EU countries. In 2003 imports was Euro 50 billion corresponding to 26% of GDP and 71% of imports are from EU countries.

The most important trading partner is Germany accounting for more than 23% of Danish imports and 19% of Danish exports. Other important trading partners are Sweden and UK.

Based on the main home market production, a selection of sectors which companies have opportunities in sub supplying to are selected:

Food processing, machinery and equipment, design (textiles, clothing, furniture) chemical products, electronics, construction, shipbuilding and energy.

Distribution Channels
In Denmark all types of distribution channels are found. For example when to use an agent or to go directly to the retail has to been decided for each business in relation to market sectors, products and services.

Business culture / climate
World Bank has compared the Business Environment in Denmark by various indicators with that of following other economies indicated as regional average:

Australia

Greece

New Zealand

Austria

Iceland

Norway

Belgium

Ireland

Portugal

Canada

Italy

Spain

 

Japan

Sweden

Finland

Korea, Rep.

Switzerland

France

Luxembourg

United Kingdom

Germany

Netherlands

United States

 

Denmark

Regional Average

Economy    

GNI per capita (US$)

30,260

23,149

Population

5.4

41,1

      
Starting a business    

Number of procedures

4

6

Duration in days

4

25

Cost % GNI per capita

0.4

8.1

Min. deposit of capita to obtain business reg. (% GNI per capita)

49.8

47

      
Employment    

Flexibility in Hiring

33

49

Flexibility in Firing

17

28

     
Enforcing commercial contracts    

Number of procedures

14

18

Duration in days

83

213

Cost (% GNI per capita)

3.8

7.1

      

Closing a Business (resolve insolvencies)

 

 

Actual time in years

4.2

1.8

Actual cost (% of estate)

8

7

Goals of Insolvency Index (high number = efficient insolvency system)

79

77

Source: Worldbank

 

 

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