Economy of Denmark

Denmark has a world-class economy. For three years running, the Economist Intelligence Unit has nominated Denmark as having the world’s best economic climate for foreign investors. Investing in Denmark is a popular choice therefore.

From Agriculture To Services

Once essentially an agricultural country, Denmark greatly expanded its industrial base after 1945 so that by 2006 industry contributed about 25% of the gross domestic product and agriculture less than 2%.

Since 1982, Denmark has introduced many reforms, which have resulted in Denmark today being the EU country with the largest budget surplus (3.5% of GDP). Unemployment is below 3%. Denmark also has one of the best-developed infrastructures in the world, a high level of education and a very competent workforce.

Europe’s Most Flexible Labour Market 

Because Denmark has very few natural resources, the economy relies almost entirely on human resources. The service sector makes up the vast amount of the employment and economy.

The Danish labour market is one of the most flexible in Europe, allowing companies to adjust the number of employees according to market demands. Disputes and strikes in the labour market are rare.

Denmark – Social State

Denmark has a highly developed welfare safety net, which ensures that all Danes receive free health care and social benefits.

The large public sector (30% of the entire workforce work for the state) is financed by the world’s highest taxes. A Value Added Tax of 25% is levied on the sale of most goods and services (including groceries). The income tax in Denmark ranges from 42% to 63% progressively.