Denmark Overview

The GDP growth rate remained correct in 2005, even if it was lower than in 2004. GDP growth rate was 2.4% in 2004 and was 2.2% in 2005. The IMF forecasts a 2.1% growth in 2006. Tax cuts and interest rates lowering since 2003 have been stimulating domestic demand and have led to a slow recovery. The Danish economy is strong: GDP per capita ranks second (behind Luxembourg) in the European Union, the State has a surplus budget and the unemployment rateis decreasing (5.4% in 2004, 4.9% in 2005). The country's economy is strongly dependant on its external trade.

Denmark's natural resources are limited and the development of heavy industry is consequently restrained. However, the country holds important gas and oil resources which can ensure its energy independence. The economy's main pillars are chemical and pharmaceutical industry, biotechnologies and services as a whole (71% of GDP). Denmark is the world's leading manufacturer of wind turbines and exports 85% of its production. The agriculture sector only accounts for 2.13% of the GDP. Two thirds of the agricultural production are exported.

Denmark is a member of the European Union but doesn't currently participate to the single currency. Exports and imports value accounts for about one third of the GDP. Almost two thirds of external trade exchanges are carried out with European countries. Denmark's predominant bilateral trade partner is significantly Germany, and Sweden, Great Britain and the Netherlands are also important partners. Denmark mainly imports consumer goods, raw materials and semi-manufactured products. Building manufacturing sectors represent 75% of goods exports.