View source for Economy of Denmark

{{Short description|None}}
{{Hatnote|Also related: [[Economy of the Faroe Islands]] and [[Economy of Greenland]]}}
{{Use dmy dates|date=June 2020}}
{{Infobox economy
| country = Denmark
| image = Copenhagen aerial view by night.jpg
| image_size = 310px
| caption = [[Copenhagen]]
| currency = [[Danish krone]] (DKK, kr)
| year = calendar year
| organs = [[European Union|EU]], [[World Trade Organization|WTO]], [[Organisation for Economic Co-operation and Development|OECD]], and others
| group = {{plainlist|
*[[Developed country|Advanced economy]]<ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/groups-and-aggregates |title=World Economic Outlook Database, April 2024 |publisher=[[International Monetary Fund]] |website=IMF.org}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>
*[[Nordic model]] EU economy<ref name="CIAWFDA"/>}}
| population = 6,004,342 (August 2025)<ref>{{cite web |url=https://www.dst.dk/en/Statistik/emner/borgere/befolkning/befolkningstal |title=Population on 1 January |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=17 June 2022}}</ref>
| gdp = {{plainlist|
*{{increase}} $431.23&nbsp;billion (nominal, 2025)<ref name="IMFWEODK">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=128,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: April 2024|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
*{{increase}} $514.05&nbsp;billion ([[Purchasing power parity|PPP]], 2025)<ref name="IMFWEODK"/>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|37th (nominal, 2025)]]
*[[List of countries by GDP (PPP)|52nd (PPP, 2023)]]}}
| growth = {{plainlist|   
*2.5%&nbsp;(2023)<ref>[https://statistikbanken.dk/nan1 "NAN1: Forsyningsbalance, bruttonationalprodukt (BNP),økonomisk vækst, beskæftigelse mv. efter transaktion og prisenhed"]. [[Statistics Denmark]]. ''B.1*g Bruttonationalprodukt, BNP'' → ''Bidrag til realvækst i BNP, (procentpoint)'' → ''2023''. Retrieved 13 January 2025.</ref>
}}
| per capita = {{plainlist|
*{{increase}} $71,978 (nominal, 2025)<ref name="IMFWEODK"/> 
*{{increase}} $85,791 (PPP, 2025)<ref name="IMFWEODK"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|9th (nominal, 2023)]]
*[[List of countries by GDP (PPP) per capita|10th (PPP, 2023)]]}}
| cpi = 90 out of 100 points (2023)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |date=30 January 2024 |title=Corruption Perceptions Index |website=[[Transparency International]] |access-date=15 July 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130062042/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|1st]])
| sectors = {{plainlist|
*agriculture: 1.6%
*mining and quarrying: 1.2%
*industry: 14.4%
*utilities and construction: 7.7%
*services: 75.2%
*(2017)<ref name=nabp10/>}}
| inflation = {{plainlist|
*3.4% (2023)
*1.5% (2024)
*2.0% (2025)<ref name="IMFWEODK"/>}}
| poverty = {{plainlist|
*4% in poverty (2021)<ref>{{cite web |url=https://data.oecd.org/chart/5M0L |title=Poverty rate |publisher=[[OECD]] |website=data.oecd.org |access-date=29 November 2019}}</ref>
*18.0% at risk of poverty or social exclusion (AROPE 2024)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tepsr_lm410/default/table?lang=en |title=People at risk of poverty or social exclusion |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat}}</ref>}}
| gini = 28.6 {{color|green|low}} (2024)<ref>{{cite web |url=https://ec.europa.eu/eurostat/databrowser/view/tessi190/default/table?lang=en |title=Gini coefficient of equivalised disposable income – EU-SILC survey |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat}}</ref>
| hdi = {{plainlist|
*0.952 {{color|darkgreen|very high}} (2022)<ref name="hdi">{{cite web |url=https://hdr.undp.org/data-center/specific-country-data#/countries/DNK |title=Human Development Index (HDI) |publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]] |website=hdr.undp.org |access-date=15 October 2022}}</ref> ([[List of countries by Human Development Index|5th]])
*0.898 {{color|darkgreen|very high}} [[List of countries by inequality-adjusted HDI|IHDI]] (2022)<ref name="hdi"/> [[List of countries by inequality-adjusted HDI|(3rd)]]}}
| labor = {{plainlist|
*3,132,170 (2022)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=DK&most_recent_value_desc=true |title=Labor force, total – Denmark |publisher=[[World Bank]] |website=data.worldbank.org |access-date=24 November 2023}}</ref>
*79.8% employment rate (2023)<ref>{{cite web |url=https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Employment_-_annual_statistics |title=Employment rate by sex, age group 20-64 |publisher=[[Eurostat]] |website=ec.europa.eu/eurostat |access-date=20 July 2024}}</ref>}}
| occupations = {{plainlist|
*agriculture: 2.4%
*mining and quarrying: 0.1%
*industry: 10.7%
*utilities and construction: 6.7%
*services: 79.9%
*(2017)<ref name=ras300/>}}
| unemployment = {{plainlist|
*2.5% (January 2022)<ref>{{cite web |url=https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=une_rt_m&lang=en |title=Unemployment by sex and age – monthly average |publisher=[[Eurostat]] |website=appsso.eurostat.ec.europa.eu/eurostat |access-date=4 October 2020}}</ref>
*12.2% youth unemployment (15 to 24 year-olds; July 2020)<ref>{{cite web |title=Unemployment rate by age group |url=https://data.oecd.org/chart/6595 |website=data.oecd.org |publisher=[[OECD]] |access-date=7 September 2020}}</ref>}}
| average gross salary = [[List of European countries by average wage|DKK 45,482 / €6,107]] monthly (2021)
| average net salary = [[List of European countries by average wage|DKK 30,971 / €4,159]] monthly (2021)
| industries = wind turbines, pharmaceuticals, medical equipment, shipbuilding and refurbishment, iron, steel, nonferrous metals, chemicals, food processing, machinery and transportation equipment, textiles and clothing, electronics, construction, furniture and other wood products
| exports = $234.2&nbsp;billion (2021)<ref name="CIAWFDA"/>
| export-goods = wind turbines, pharmaceuticals, machinery and instruments, meat and meat products, dairy products, fish, furniture and design
| export-partners = {{plainlist|
*Germany 14.0% 
*Sweden 10.0% 
*United States 10.0% 
*China 6.0%
*Norway 5.0% 
*(2021)<ref name="CIAWFDA">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/denmark/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=12 Mar 2024}}</ref>}}
| imports = $208.1&nbsp;billion (2021 est.)<ref name="CIAWFDA"/>
| import-goods = machinery and equipment, raw materials and semimanufactures for industry, chemicals, grain and foodstuffs, consumer goods
| import-partners = {{plainlist|
*Germany 21% 
*Sweden 12% 
*China 9% 
*Netherlands 8% 
*Poland 4.0%
*(2021)<ref name="CIAWFDA"/>}}
| current account = $32.4&nbsp;billion (2021 est.)<ref name="CIAWFDA"/>
| FDI = {{plainlist|
*$188.7&nbsp;billion (2017)<ref name="CIAWFDA"/>
*Abroad: $287.9 billion (2017)<ref name="CIAWFDA"/>}}
| gross external debt = $484.8&nbsp;billion (2016)<ref name="CIAWFDA"/>
| NIIP = 64.6% of GDP (1 July 2018)<ref name=niip/>
| debt = {{plainlist|
*33.2% of GDP (2019)<ref name="1st Notif">{{cite web |title=Euro area and EU27 government deficit both at 0.6% of GDP|url=https://ec.europa.eu/eurostat/documents/2995521/10294648/2-22042020-AP-EN.pdf |archive-url=https://web.archive.org/web/20200604160829/https://ec.europa.eu/eurostat/documents/2995521/10294648/2-22042020-AP-EN.pdf |archive-date=2020-06-04 |url-status=live |website=ec.europa.eu/eurostat |publisher=Eurostat |access-date=28 April 2020}}</ref>
*DKK 770.832&nbsp;billion (2019)<ref name="1st Notif"/>}}
| revenue = 53.3% of GDP (2019)<ref name="1st Notif"/>
| expenses = 49.6% of GDP (2019)<ref name="1st Notif"/>
| balance = {{plainlist|
*DKK 84.9&nbsp;billion surplus (2019)<ref name="1st Notif"/>
*+3.7% of GDP (2019)<ref name="1st Notif"/>}}
| reserves = $75.25&nbsp;billion (2017)<ref name="CIAWFDA"/>
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011}}</ref><ref>{{cite news |author=Monaghan, A. |date=15 October 2014 |title=The AAA-rated club: which countries still make the grade? | url=https://www.theguardian.com/business/economics-blog/2014/oct/15/the-aaa-rated-club-which-countries-still-make-the-grade | newspaper=The Guardian | access-date=10 June 2018}}</ref>
*AAA (Domestic)
*AAA (Foreign)
*AAA (T&C Assessment)
*Scope:<ref>{{cite news | title=Scope affirms the Kingdom of Denmark’s AAA rating with Stable Outlook
|publisher=Scope Ratings |url=https://scoperatings.com/ratings-and-research/rating/EN/179136 |access-date=1 August 2025}}</ref>
*AAA
*Outlook: Stable}}
| aid = {{plainlist|
*€613 million from [[European Structural and Investment Funds]] (2007–2013)<ref>{{Cite web |url=http://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/da_en.pdf |title=Archived copy |access-date=25 December 2017 |archive-url=https://web.archive.org/web/20171225203037/http://ec.europa.eu/regional_policy/sources/docgener/informat/country2009/da_en.pdf |archive-date=25 December 2017 |url-status=live}}</ref>}}
| cianame = 
| spelling = 
}}
[[Denmark]] has a modern [[World Bank high-income economy|high-income]] and [[Developed country|highly developed]] [[mixed economy]], dominated by the [[service sector]] with 80% of all jobs; about 11% of employees work in manufacturing and 2% in agriculture. The nominal [[gross national income]] per capita was the ninth-highest in the world at $68,827 in 2023.

Correcting for purchasing power, per capita income was [[International dollar|Int$]]57,781 or 10th-highest globally.<ref name=wb/> The income distribution is relatively equal but inequality has somewhat increased during the last decades.<ref name=DECF16/> In 2017, Denmark had the seventh-lowest [[Gini coefficient]] (a measure of economic inequality) of the then 28 [[European Union]] countries.<ref name=eurostat/> With 5,932,654 inhabitants as of 1 January 2023,<ref>Statistikbanken.dk/10021:Befolkning og valg/(table)FOLK1AM</ref> Denmark has the [[List of countries by GDP (nominal)|38th largest national economy]] in the world measured by nominal gross domestic product (GDP), and the 52nd largest in the world measured by [[List of countries by GDP (PPP)|purchasing power parity]] (PPP). Among [[OECD]] nations, Denmark has a highly efficient and [[Nordic model|strong social security system]]; social expenditure stood at [[Welfare state#Effects|roughly 26.2% of GDP]].<ref name="Kenworthy">{{Cite journal |jstor = 3005973|title = Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment|journal = Social Forces|volume = 77|issue = 3|pages = 1119–1139|last1 = Kenworthy|first1 = Lane|year = 1999|doi = 10.2307/3005973|url = http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-url = https://web.archive.org/web/20130810134045/http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-date = 10 August 2013|url-status = live}}</ref><ref name="Bradley et al.">{{Cite journal |jstor = 3088901|title = Determinants of Relative Poverty in Advanced Capitalist Democracies|journal = American Sociological Review|volume = 68|issue = 1|pages = 22–51|last1 = Moller|first1 = Stephanie|last2 = Huber|first2 = Evelyne|last3 = Stephens|first3 = John D.|last4 = Bradley|first4 = David|last5 = Nielsen|first5 = François|year = 2003|doi = 10.2307/3088901}}</ref><ref>{{Cite web | url=https://www.oecd.org/social/expenditure.htm | title=Social Expenditure – Aggregated data|work=[[Organisation for Economic Co-operation and Development]]}}</ref>

Denmark has a very long tradition of adhering to a [[fixed exchange-rate system]] and still does so today. It is unique among OECD countries to do so while maintaining an independent currency: the [[Danish krone|Danish Krone]], which is pegged to the [[euro]].<ref>{{Cite journal |last=Eichengreen |first=Barry |date=2023 |title=The Danish problem |journal=Economia Politica |volume=40 |issue=3 |pages=781–794 |doi=10.1007/s40888-023-00313-y |issn=1973-820X|doi-access=free}}</ref> Though eligible to join the EU's [[Economic and Monetary Union of the European Union|Economic and Monetary Union]] (EMU), Danish voters in a [[2000 Danish euro referendum|referendum in 2000]] rejected exchanging the krone for the euro. Whereas Denmark's neighbours like Norway, Sweden, Poland and the United Kingdom generally follow [[inflation targeting]] in their monetary policy, the priority of Denmark's central bank is to maintain exchange rate stability. Consequently, the central bank has no role in a domestic stabilization policy.

In an international context, a relatively large proportion of the population is part of the labour force, in particular because the female participation rate is very high. 78.8% of all 15-to-64-year-olds were active in the labour market in 2017, the sixth-highest number among all OECD countries. With a 4.8% unemployment rate, unemployment is relatively low in comparison to other European countries, where the average unemployment rate is 6.7%.<ref>{{Cite web|url=http://ec.europa.eu/eurostat/tgm/table.do?tab=table&language=en&pcode=teilm020&tableSelection=1&plugin=1|title=Harmonised unemployment rate by gender|publisher=[[Eurostat]]|access-date=1 December 2018}}</ref> The labour market is traditionally characterized by a high degree of [[union membership]] rates and [[collective agreement coverage]]. Denmark invests heavily in [[Active Labor Market Policies in Denmark|active labor market policies]] and the concept of [[flexicurity]] has been important historically.

Denmark is an example of the [[Nordic model]], characterized by an internationally high tax level, and a correspondingly high level of government-provided services (e.g. health care, child care and education services). There are also [[Transfer payment|income transfers]] to various groups, such as retirees, disabled people, the unemployed, and students. Altogether, the amount of revenue from taxes paid in 2017 amounted to 46.1% of GDP. The Danish fiscal policy is generally considered healthy. The net government debt is very close to zero, amounting to 1.3% of GDP in 2017. The Danish fiscal policy is characterized by a long-term outlook, taking into account likely future fiscal demands. During the 2000s, a challenge was perceived to government expenditures in future decades. It was ultimately a challenge to [[fiscal sustainability]] from demographic development, in particular higher longevity. Responding to this, age eligibility rules for receiving public age-related transfers were changed. Since 2012, calculations of future fiscal challenges, from both the government and independent analysts, have generally perceived Danish fiscal policy to be sustainable. In recent years, it was considered overly sustainable.

==History==
[[File:GDP per capita development in Denmark.jpg|thumb|Development of real GDP per capita, 1820 to 2018]]
Denmark's long-term economic development has largely followed the same pattern as other Northwestern European countries. In most of recorded history Denmark has been an agricultural country with most of the population living on a [[subsistence level]]. Since the 19th century, Denmark has gone through an intense technological and institutional development. The material standard of living has experienced formerly unknown rates of growth, and the country has been industrialized and later turned into a modern market-economy society.<ref>{{Cite journal|title=Denmark: The epitome of 'innovism'?|last1=Kirkegaard Sløk-Madsen|first1=Stefan|last2=Mogensen Nielsen|first2=Henrik|journal=[[Economic Affairs (journal)|Economic Affairs]]|issue=2|doi=10.1111/ecaf.12652|year=2024|volume=44|pages=394–401|doi-access=free}}</ref>

Almost all of the land area of Denmark is arable. Unlike most of its neighbours, Denmark has not had extractable deposits of minerals or fossil fuels, except for the deposits of oil and natural gas in the North Sea, which started playing an economic role only during the 1980s. 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.<ref name=henriksen>{{cite web| url = http://eh.net/encyclopedia/an-economic-history-of-denmark/| title = Ingrid Henriksen: An Economic History of Denmark. EH.Net Encyclopedia, edited by Robert Whaples. |date=6 October 2006}}</ref> Consequently, foreign trade has always been very important for the economic development of Denmark. 
[[File:Penning - dannebrogsmønt - Kmm 0034.jpg|thumb|left|Danish silver [[Norwegian penning|penning]] from the time of [[Valdemar I of Denmark]]]]

Already during the [[Stone Age]] there was some foreign trade,<ref name=busck>{{in lang|da}} [http://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/udenrigshandel-foer-1848/ Steen Busck: Udenrigshandel før 1848. From danmarkshistorien.dk, Aarhus University. Date 6 July 2012. ] {{Webarchive|url=https://web.archive.org/web/20181221153955/https://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/udenrigshandel-foer-1848/ |date=21 December 2018 }}</ref> 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. The emerging trade implied specialization which created demand for means of [[payment]]s, and the earliest known Danish coins date from the time of [[Svend Tveskæg]] around 995.<ref>{{in lang|da}} [http://www.nationalbanken.dk/da/om_nationalbanken/historie/Sider/650-f.-kr.-1020---Etablering-af-M%C3%B8ntv%C3%A6sen.aspx 650 f. kr.-1020 – Etablering af møntvæsen. Website of Danmarks Nationalbank, date 14 June 2016.]</ref>

[[File:Otto Thott.jpg|thumb|Count [[Otto Thott]] was the foremost representative of [[mercantilist]] thought in Denmark.]]

Improvements in shipping technology allowed traders to sail around Jutland and into the Baltic Sea directly, and Danish warships collected the [[Sound Toll]] from these mainly Dutch merchants, in exchange for protection. Nordic rulers before the mid-seventeenth century welcomed the Dutch merchants for their efficient shipping services and inflow of investments which boosted industrial development.<ref>{{cite book |last1=Hanno Brand, Leos Müller |title=The Dynamics of Economic Culture in the North Sea and Baltic Region In the Late Middle Ages and Early Modern Period |date=2007 |publisher=Verloren |isbn=9789065508829 |pages=19–21}}</ref> According to economic historian [[Angus Maddison]], Denmark was the sixth-most prosperous country in the world around 1600. The population size relative to arable agricultural land was small so that the farmers were relatively affluent, and Denmark was geographically close to the most dynamic and economically leading European areas since the 16th century: the Netherlands, the northern parts of Germany, and Britain. Still, 80 to 85% of the population lived in small villages on a subsistence level.<ref name=henriksen/>

[[Mercantilism]] was the leading economic doctrine during the 17th and 18th century in Denmark,<ref name=merkantilisme>{{in lang|da}} [http://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/merkantilisme/ Steen Busck: Merkantilisme. From danmarkshistorien.dk, Aarhus University. Date 9 February 2015.]</ref> leading to the establishment of monopolies like [[Asiatisk Kompagni]], development of physical and financial infrastructure like the first Danish bank [[Kurantbanken]] in 1736 and the first "[[mortgage industry of Denmark|kreditforening]]" (a kind of [[building society]]) in 1797, and the acquisition of some minor Danish colonies like [[Tranquebar]].<ref>{{in lang|da}} [http://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/merkantilisme-og-danske-tropekolonier/ Peter Bejder and Benjamin Kristensen: Merkantilisme og danske tropekolonier, ca. 1600–1917. From danmarkshistorien.dk, Aarhus University. Date 2 November 2015.] {{Webarchive|url=https://web.archive.org/web/20181004165342/http://danmarkshistorien.dk/leksikon-og-kilder/vis/materiale/merkantilisme-og-danske-tropekolonier/ |date=4 October 2018 }}</ref>

At the end of the 18th century major agricultural reforms took place that entailed decisive structural changes.<ref name=henriksen/><ref name=":1">{{Citation |last=Kærgård |first=Niels |title=The Economic History of Denmark, 1784–2019 |date=2022 |url=https://oxfordre.com/economics/display/10.1093/acrefore/9780190625979.001.0001/acrefore-9780190625979-e-681 |encyclopedia=Oxford Research Encyclopedia of Economics and Finance |doi=10.1093/acrefore/9780190625979.013.681 |isbn=978-0-19-062597-9|url-access=subscription }}</ref> However, the Napoleonic Wars caused Copenhagen to lose its status as an international center of finance and trade.<ref>{{cite book |title=The New Encyclopaedia Britannica |date=1983 |publisher=Encyclopaedia Britannica |isbn=9780852294000 |page=324 |edition=15}}</ref> Politically, mercantilism was gradually replaced by liberal thoughts among the ruling elite. Following a monetary reform after the Napoleonic wars, the present Danish central bank [[Danmarks Nationalbank]] was founded in 1818.

There exists [[national accounting]] data for Denmark from 1820 onwards thanks to the pioneering work of Danish economic historian [[Svend Aage Hansen]].<ref>{{in lang|da}} Hansen, Sv. Aa. (1976): Økonomisk vækst i Danmark. Volume I: 1720–1914, volume II: 1914–70. Akademisk Forlag.</ref> They find that there has been a substantial and permanent, though fluctuating, economic growth all the time since 1820. The period 1822–94 saw on average an annual growth in factor incomes of 2% (0.9% per capita) From around 1830 the agricultural sector experienced a major boom lasting several decades, producing and exporting grains, not least to Britain after 1846 when British grain import duties were abolished. 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.<ref name=henriksen/> Parallelly industrialization took off in Denmark from the 1870s. At the turn of the century industry (including artisanry) fed almost 30% of the population.<ref>{{in lang|da}} [http://danmarkshistorien.dk/perioder/det-unge-demokrati-1848-1901/fremstillingserhverv-og-industrialisering/ Erik Strange Petersen: ''Det unge demokrati, 1848–1901: Fremstillingserhverv og industrialisering''. From danmarkshistorien.dk, Aarhus University. Undated, retrieved 23 October 2017.] {{Webarchive|url=https://web.archive.org/web/20180929010617/http://danmarkshistorien.dk/perioder/det-unge-demokrati-1848-1901/fremstillingserhverv-og-industrialisering/ |date=29 September 2018}}</ref>

During the 20th century agriculture slowly dwindled in importance relative to industry,<ref name=":1" /> but agricultural employment was only during the 1950s surpassed by industrial employment. The first half of the century was marked by the two world wars and the Great Depression during the 1930s. After World War II Denmark took part in the increasingly close international cooperation, joining the OECD, [[IMF]], [[WTO]], and from 1972 the [[European Economic Community]], later [[European Union]]. Foreign trade increased heavily relative to GDP. The economic role of the public sector increased considerably, and the country was increasingly transformed from an industrial country to a country dominated by production of services. The years 1958–73 were an unprecedented high-growth period. The 1960s are the decade with the highest registered real per capita growth in GDP ever, i.e. 4.5% annually.<ref>{{in lang|da}} Johansen, H.C. (2005): Gyldendal og Politikens Danmarkshistorie, volume 17. Statistik og register. P. 157. Gyldendal and Politikens Forlag.</ref>
[[File:Torben M. Andersen professor i nationalekonomi arhus universitet pa konferensen Fiscal consequences of the crises, som anornades av de nordiska finansministrarna 2010-03-22.jpg|thumb|As a chairman of the Danish Economic Council and of several policy-preparing commissions, Professor [[Torben M. Andersen]] has played an important role in Danish economic policy debates for the last decades.]]

During the 1970s Denmark was plunged into a crisis, initiated by the [[1973 oil crisis]] leading to the hitherto unknown phenomenon [[stagflation]]. For the next decades the Danish economy struggled with several major so-called "balance problems": High unemployment, current account deficits, inflation, and government debt. From the 1980s economic policies have increasingly been oriented towards a long-term perspective, and gradually a series of structural reforms have solved these problems. In 1994 [[active labour market policies]] were introduced that via a series of labour market reforms have helped reducing [[structural unemployment]] considerably.<ref>{{in lang|da}} [http://www.nationalbanken.dk/da/publikationer/Sider/2012/09/Arbejdsmarkedsreformer-i-Danmark-og-Tyskland.aspx Jacob Isaksen, Uffe Mikkelsen and Peter Beck Nellemann (2012): Arbejdsmarkedsreformer i Danmark og Tyskland. Kvartalsoversigt, 3. kvartal 2012, del 1. Danmarks Nationalbank.]</ref> 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. The announcement of a consistent and hence more credible fixed exchange rate in 1982 has helped reducing the inflation rate.

In the first decade of the 21st century new economic policy issues have emerged. 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. Mainly because of these changes, from 2012 onwards the Danish fiscal sustainability problem is generally considered to be solved.<ref>{{in lang|da}} [https://dors.dk/vismandsrapporter/dansk-oekonomi-efteraar-2016/kapitel-iii-finanspolitisk-holdbarhed Finanspolitisk holdbarhed. Kapitel III i De Økonomiske Råds Formandskab: Dansk Økonomi, efterår 2016. De Økonomiske Råds Sekretariat. P. 146.]</ref> Instead, issues like decreasing productivity growth rates and increasing [[economic inequality|inequality]] in [[income distribution]] and consumption possibilities are prevalent in the [[public debate]].

The global [[Great Recession]] during the late 2000s, the accompanying [[Euro area crisis|Euro area debt crisis]] and their repercussions marked the Danish economy for several years. Until 2017, unemployment rates have generally been considered to be above their structural level, implying a relatively stagnating economy from a business-cycle point of view. From 2017/18 this is no longer considered to be the case, and attention has been redirected to the need of avoiding a potential [[Overheating (economics)|overheating situation]].

In 2022 the popularity of [[Novo Nordisk]]'s [[Ozempic]] and [[Wegovy]] for weight loss began greatly affecting the Danish economy. The pharmaceutical industry contributed two thirds of growth that year, and 1.7 points of the 1.9% year-over-year growth in the first quarter of 2023. {{as of|2023|08}} Novo Nordisk's market capitalization—Europe's second-largest, after [[LVMH]]—exceeded the size of the entire national economy, and it is the largest payer of [[corporate tax]]es to the Danish state. Economists discussed whether the government needed to publish data including and excluding the company; as the enormous economic growth did not similarly increase employment, data including Novo Nordisk is misleading regarding the Danish [[business cycle]]. Some worried that the nation might become overdependent on the company, similar to what happened to the [[economy of Finland]] with [[Nokia]], or that Novo Nordisk's success might cause [[Dutch disease]].<ref name="nelson20230830">{{Cite news |last=Nelson |first=Eshe |date=2023-08-30 |title=Novo Nordisk Tilts G.D.P. In Denmark |page=B1 |work=The New York Times |url=https://www.nytimes.com/2023/08/28/business/denmark-ozempic-wegovy.html |access-date=2023-10-05 |issn=0362-4331}}</ref>

== Income, wealth and income distribution ==

Average per capita income is high in an international context. According to the [[World Bank]], [[gross national income]] per capita was the tenth-highest in the world at $55,220 in 2017. Correcting for purchasing power, income was [[Geary–Khamis dollar|Int$]]52,390 or 16th-highest among the 187 countries.<ref name=wb>{{cite web| url = http://databank.worldbank.org/data/download/GNIPC.pdf| title = Gross national income per capita 2017, Atlas method and PPP. |website=World Bank |date=21 September 2018 |access-date=28 November 2018}}</ref>

During the last three decades household [[saving rate]]s in Denmark have increased considerably. This is to a large extent caused by two major institutional changes: A series of [[tax reform]]s from 1987 to 2009 considerably reduced the effective subsidization of private debt implicit in the rules for [[tax deduction]]s of household interest payments. Secondly, compulsory funded pension schemes became normal for most employees from the 1990s.<ref name=DEC/> Over the years, the wealth of the Danish [[pension fund]]s have accumulated so that in 2016 it constituted twice the size of Denmark's GDP.<ref>{{in lang|da}} Danskernes pensionsformue er massiv. Analysis from "Dansk Metal" dated 6 November 2017. Retrieved 28 November 2018.</ref> The pension wealth consequently is a very important both for the life-cycle of a typical individual Danish household and for the national economy. A large part of the pension wealth is invested abroad, thus giving rise to a fair amount of foreign capital income. In 2015, average household assets were more than 600% of their [[disposable income]], among OECD countries second only to the Netherlands. At the same time, average household gross debt was almost 300% of disposable income, which is also at the highest level in OECD. Household [[balance sheets]] are consequently very large in Denmark compared to most other countries. Danmarks Nationalbank, the Danish central bank, has attributed this to a well-developed [[financial system]].<ref>{{cite web| url = http://www.nationalbanken.dk/en/publications/themes/Pages/Household-wealth-and-debt.aspx| title = Household wealth and debt. Website of Danmarks Nationalbank, published 21 February 2014 with updates April 2017. |access-date=28 November 2018}}</ref>

===Income inequality===
{{Main|Income inequality in Denmark}}

[[Income inequality]] has traditionally been low in Denmark. According to OECD figures, in 2000 Denmark had the lowest [[Gini coefficient]] of all countries.<ref>{{in lang|da}} [https://www.fm.dk/publikationer/arbejdspapirer/2008/indkomstudvikling-og-fordeling-i-danmark-1983_2005 Indkomstudvikling og -fordeling i Danmark 1983–2005. Website of Ministry of Finance, Denmark. Dated January 2008, retrieved 1 December 2018.] {{Webarchive|url=https://web.archive.org/web/20181202033336/https://www.fm.dk/publikationer/arbejdspapirer/2008/indkomstudvikling-og-fordeling-i-danmark-1983_2005 |date=2 December 2018}}</ref> However, inequality has increased during the last decades. According to data from Statistics Denmark, the [[Gini coefficient]] for disposable income has increased from 22.1 in 1987 to 29.3 in 2017.<ref>{{cite web| url = http://statistikbanken.dk/IFOR41 |website=StatBank Denmark |title=Table IFOR41: Inequality indicators on equivalised disposable income by indicator and municipality. |access-date=28 November 2018}}</ref> The Danish Economic Council found in an analysis from 2016 that the increasing inequality in Denmark is due to several components: Pre-tax labour income is more unequally distributed today than before, capital income, which is generally less equally distributed than labour income, has increased as share of total income, and economic policy is less redistributive today, both because public income transfers play a smaller role today and because the tax system has become less progressive.<ref name=DECF16>{{cite web| url = https://dors.dk/vismandsrapporter/dansk-oekonomi-efteraar-2016| title = Danish Economic Council: Danish Economy Fall 2016. English Summary, p. 335f.| date = 4 October 2016}}</ref>

In international comparisons, Denmark has a relatively equal income distribution. According to the CIA World Factbook, Denmark had the twentieth-lowest Gini coefficient (29.0) of 158 countries in 2016.<ref>{{cite web| url = https://www.cia.gov/library/publications/the-world-factbook/fields/223rank.html#DA| archive-url = https://web.archive.org/web/20181128211129/https://www.cia.gov/library/publications/the-world-factbook/fields/223rank.html#DA| url-status = dead| archive-date = 28 November 2018| title = Country Comparison: Distribution of family income – Gini index. |website=The World Factbook – Central Intelligence Agency |access-date=28 November 2018}}</ref> According to data from [[Eurostat]], Denmark was the EU country with the seventh-lowest Gini coefficient in 2017. Slovakia, Slovenia, Czechia, Finland, Belgium and the Netherlands had a lower Gini coefficient for disposable income than Denmark.<ref name=eurostat>{{cite web| url = http://appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do| title = Gini coefficient of equivalised disposable income – EU-SILC survey. Eurostat, last data update 20 November 2018. |access-date=28 November 2018}}</ref>

==Labour market and employment==

The Danish labour market is characterized by a high degree of [[union membership]] rates and [[collective agreement coverage]] dating back from ''Septemberforliget'' (The September Settlement) in 1899 when the [[Danish Confederation of Trade Unions]] and the Confederation of Danish Employers recognized each other's right to organise and negotiate. The labour market is also traditionally characterized by a high degree of [[flexicurity]], i.e. a combination of [[labour market flexibility]] and economic security for workers.<ref>{{cite web| url = https://www.star.dk/en/about-the-danish-agency-for-labour-market-and-recruitment/flexicurity/| title = Flexicurity |website=The Danish Agency for Labour Market and Recruitment |access-date=23 November 2018}}</ref> The degree of flexibility is in part maintained through [[active labour market policies]]. Denmark first introduced [[active labour market policies]] (ALMPs) in the 1990s after an economic recession that resulted in high unemployment rates.<ref>{{Cite web|url=https://eh.net/encyclopedia/an-economic-history-of-denmark/|title=An Economic History of Denmark|website=eh.net|access-date=2 August 2019}}</ref> Its labour market policies are decided through tripartite cooperation between employers, employees and the government.<ref name=":0">{{Cite journal|last1=Jespersen|first1=Svend T.|last2=Munch|first2=Jakob R.|last3=Skipper|first3=Lars|date=2008|title=Costs and benefits of Danish active labour market programmes|url=http://web.econ.ku.dk/jrm/PDFfiles/JespersenMunchSkipper2008.pdf |archive-url=https://web.archive.org/web/20190802063730/http://web.econ.ku.dk/jrm/PDFfiles/JespersenMunchSkipper2008.pdf |archive-date=2019-08-02 |url-status=live|journal=Labour Economics|volume=15|issue=5|pages=859–884|doi=10.1016/j.labeco.2007.07.005}}</ref> Denmark has one of the highest expenditures on ALMPs and in 2005, spent about 1.7% of its GDP on labour market policies.<ref>{{Cite web|url=https://www.oecd.org/employment/leed/40575308.pdf |archive-url=https://web.archive.org/web/20150616065533/http://www.oecd.org/employment/leed/40575308.pdf |archive-date=2015-06-16 |url-status=live|title=Danish Employment Policy|last=Hendeliowitz|first=Jan|date=February 2008|website=Employment Region Copenhagen & Zealand The Danish National Labour Market Authority}}</ref> This was the highest amongst the [[OECD]] countries. Similarly, in 2010 Denmark was ranked number one amongst Nordic countries for expenditure on ALMPs.<ref>{{Cite journal|last=Greve|first=Bent|s2cid=14300043|date=2012|title=Denmark a Nordic Welfare State – Are the Active Labour Market Policy Withering Away?|journal=The Open Social Science Journal|volume=5|pages=15–23|doi=10.2174/1874945301205010015|doi-access=free}}</ref>

Denmark's [[active labour market policies]] particularly focus on tackling [[youth unemployment]]. They have had a "youth initiative" or the Danish Youth Unemployment Programme in place since 1996.<ref>{{Cite web |title=Youth unemployment policies: Review of the Danish Youth Unemployment Programme and the British New Deal for Young People |website=Mutual Learning Employment |url=http://pdf.mutual-learning-employment.net/pdf/en9908.pdf |archive-url=https://web.archive.org/web/20111216005830/http://pdf.mutual-learning-employment.net/pdf/en9908.pdf |archive-date=2011-12-16 |s2cid=8717167}}</ref> This includes mandatory activation for those unemployed under the age of 30. While unemployment benefits are provided, the policies are designed to motivate job-seeking. For example, unemployment benefits decrease by 50% after 6 months.<ref>{{Cite web|url=https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/|title=Tackling youth unemployment in Denmark|website=Danish Agency for Labour Market and Recruitment|access-date=2 August 2019|archive-date=2 August 2019|archive-url=https://web.archive.org/web/20190802063731/https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/|url-status=dead}}</ref> This is combined with education, skill development and work training programs. For instance, the Building Bridge to Education program was started in 2014 to provide mentors and skill development classes to youth that are at risk of unemployment.<ref name="Building Bridge to Education">{{Cite web|url=https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/building-bridge-to-education/|title=Building Bridge to Education|website=Danish Agency for Labour Market and Recruitment|access-date=2 August 2019|archive-date=2 August 2019|archive-url=https://web.archive.org/web/20190802063733/https://star.dk/en/active-labour-market-policy-measures/tackling-youth-unemployment-in-denmark/building-bridge-to-education/|url-status=dead}}</ref> Such [[active labour market policies]] have been successful for Denmark in the short-term and the long-term. For example, 80% of participants in the Building Bridge for Education program felt that "the initiative has helped them to move towards completing an education".<ref name="Building Bridge to Education"/> On a more macro scale, a study of the impact of ALMPs in Denmark between 1995 and 2005 showed that such policies had positive impact not just on employment but also on earnings.<ref name=":0" /> The effective compensation rate for unemployed workers has been declining for the last decades, however. Unlike in most Western countries there is no legal [[minimum wage]] in Denmark.

A relatively large proportion of the population is active on the labour market, not least because of a very high female participation rate. The total participation rate for people aged 15 to 64 years was 78.8% in 2017. This was the 6th-highest number among OECD countries, only surpassed by Iceland, Switzerland, Sweden, New Zealand and the Netherlands. The average for all OECD countries together was 72.1%.<ref>{{cite web| url = https://stats.oecd.org/Index.aspx?DataSetCode=LFS_SEXAGE_I_R#| title = LFS by sex and age – indicators: Labour force participation rate. OECD statistics. |access-date=23 November 2018}}</ref>

According to [[Eurostat]], the unemployment rate was 5.7% in 2017. This places unemployment in Denmark somewhat below the EU average, which was 7.6%. 10 EU member countries had a lower unemployment rate than Denmark in 2017.<ref>{{cite web| url = http://ec.europa.eu/eurostat/web/lfs/data/database| title = Eurostat Employment and Unemployment Database, Table une_rt_a. Unemployment by sex and age – annual average. Last update 31 October 2018.}}</ref>

Altogether, total employment in 2017 amounted to 2,919,000 people according to Statistics Denmark.<ref>{{cite web| url = http://statistikbanken.dk/nan1 |website=StatBank Denmark |title=Table NAN1: Demand and supply by price unit, transaction and time. |access-date=23 November 2018}}</ref>

The share of employees leaving jobs every year (for a new job, retirement or unemployment) in the private sector is around 30%<ref>{{in lang|da}}[https://di.dk/personale/loen/nyheder/pages/personaleomsaetning2017flereskifterjob-isaeriserviceerhverv.aspx "Personaleomsætning 2017: Flere skifter job – især i serviceerhverv". Confederation of Danish Industry, 18 June 2018.] {{Webarchive|url=https://web.archive.org/web/20181116220040/https://di.dk/personale/loen/nyheder/pages/personaleomsaetning2017flereskifterjob-isaeriserviceerhverv.aspx |date=16 November 2018}}</ref> – 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. This attrition can be very costly, with new and old employees requiring half a year to return to old productivity levels, but with attrition bringing the number of people that have to be fired down.<ref>{{in lang|da}} [http://www.business.dk/article/20080729/okonomi/80729003/ Hyppige jobskift koster milliarder] {{webarchive|url=https://web.archive.org/web/20080730125033/http://www.business.dk/article/20080729/okonomi/80729003/ |date=30 July 2008}}</ref>

==Foreign trade==

As a [[small open economy]], Denmark is very dependent on its foreign trade. In 2017, the value of total exports of goods and services made up 55% of GDP, whereas the value of total imports amounted to 47% of GDP. Trade in goods made up slightly more than 60% of both exports and imports, and trade in services the remaining close to 40%.<ref>{{cite web| url = http://www.statistikbanken.dk/nan1 |website=StatBank Denmark |title=Table NAN1: Demand and supply by transaction and price unit |access-date=26 November 2018}}</ref>

Machinery, chemicals and related products like medicine and agricultural products were the largest groups of export goods in 2017.<ref>{{cite web| url = http://www.statistikbanken.dk/uhv4 |website=StatBank Denmark |title=Table UHV4: Total external trade by imports and exports, main SITC groups and country |access-date=26 November 2018}}</ref> Service exports were dominated by freight sea transport services from the Danish [[merchant navy]].<ref>{{cite web| url = http://www.statistikbanken.dk/uhtp |website=StatBank Denmark |title=Table UHTP: International trade in services, quarterly by imports and exports, items and time |access-date=26 November 2018}}</ref> Most of Denmark's most important trading partners are neighbouring countries. The five main importers of Danish goods and services in 2017 were Germany, Sweden, United Kingdom, United States and Norway. The five countries from which Denmark imported most goods and services in 2017 were Germany, Sweden, the Netherlands, China and United Kingdom.<ref>{{cite web| url = http://www.statistikbanken.dk/uhv2 |website=StatBank Denmark |title=Table UHV2: Total external trade by imports and exports, seasonal adjustment and country |access-date=26 November 2018}}</ref>

After having almost consistently an external [[balance of payments]] [[Current account (balance of payments)|current account]] deficit since the beginning of the 1960s, Denmark has maintained a surplus on its BOP current account for every year since 1990, with the single exception of 1998. In 2017, the current account surplus amounted to approximately 8% of GDP.<ref>{{cite web| url = https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=teibp051&plugin=1|website=Eurostat |title=Balance of payments, current account, quarterly data – % of GDP |access-date=26 November 2018}}</ref> Consequently, Denmark has changed from a net debtor to a net creditor country. By 1 July 2018, the net foreign wealth or [[net international investment position]] of Denmark was equal to 64.6% of GDP, Denmark thus having the largest net foreign wealth relative to GDP of any EU country.<ref name="niip">{{cite web| url = https://ec.europa.eu/eurostat/web/products-datasets/-/TIPSII40|website=Eurostat |title=Net international investment position – quarterly data, % of GDP |date=24 October 2018 |access-date=26 November 2018}}</ref>

As the annual current account is equal to the value of domestic saving minus total domestic investment, the change from a structural deficit to a structural surplus is due to changes in these two national account components. In particular, the Danish national saving rate in financial assets increased by 11 per cent of GDP from 1980 to 2015. Two main reasons for this large change in domestic saving behaviour were the growing importance of large-scale compulsory pension schemes and several Danish fiscal policy reforms during the period which considerably decreased [[tax deduction]]s of household [[interest expense]], thus reducing the tax subsidy to [[private debt]].<ref name=DEC>{{cite web| url = https://dors.dk/vismandsrapporter/oekonomi-miljoe-2017| title = Danish Economic Council: Economy and the Environment 2017. English Summary, p. 341.| date = 23 February 2017}}</ref>

==Currency and monetary policy==
{{Main|Denmark and the euro}}
[[File:Nationalbanken 1.jpg|thumb|The building of [[Danmarks Nationalbank]], the [[central bank]] of Denmark, built by the Danish architect [[Arne Jacobsen]]]]
The Danish currency is the [[Danish krone]], subdivided into 100 [[øre]]. The krone and øre were introduced in 1875, replacing the former [[Danish rigsdaler|rigsdaler]] and [[Skilling (currency)|skilling]].<ref name="history">{{cite web |url=http://www.kgl-moent.dk/DKM/UK/RoyalMint.nsf/side/History_of_Danish_coinage!OpenDocument |title=History of Danish coinage |publisher=Denmarks Nationalbank |access-date=12 April 2012 |archive-url=https://web.archive.org/web/20120730153248/http://www.kgl-moent.dk/DKM/UK/RoyalMint.nsf/side/History_of_Danish_coinage%21OpenDocument |archive-date=30 July 2012}}</ref> Denmark has a very long tradition of maintaining a [[fixed exchange-rate system]], dating back to the period of the [[gold standard]] during the time of the [[Scandinavian Monetary Union]] from 1873 to 1914. After the breakdown of the international [[Bretton Woods system]] in 1971, Denmark [[devaluation|devalued]] the krone repeatedly during the 1970s and the start of the 1980s, effectively maintaining a policy of "fixed, but adjustable" exchange rates. Rising inflation led to Denmark declaring a more consistent fixed exchange-rate policy in 1982. 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]].<ref>{{in lang|da}} P. U. Johansen and M. Trier (2012): Danmarks økonomi siden 1980 – en oversigt. Handelshøjskolens forlag. P. 144.</ref>

Although eligible, Denmark chose not to join the [[European Monetary Union]] when it was founded. In 2000, the Danish government advocated Danish EMU membership and called a [[2000 Danish euro referendum|referendum to settle the issue]]. With a turn-out of 87.6%, 53% of the voters rejected Danish membership. Occasionally, the question of calling another referendum on the issue has been discussed, but since the [[2008 financial crisis]], opinion polls have shown a clear majority against Denmark joining the EMU,<ref>{{in lang|da}} [http://www.danskebank.com/en-uk/ci/Products-Services/Markets/Research/Documents/OEMU_mar2014.pdf "Nej"-sidens forspring skrumpet en smule. Brief from Danske Bank, published 24 March 2014. Retrieved 25 November 2018.] {{Webarchive|url=https://web.archive.org/web/20150923212651/http://www.danskebank.com/en-uk/ci/Products-Services/Markets/Research/Documents/OEMU_mar2014.pdf |date=23 September 2015}}</ref> and the question is not high on the political agenda presently.

Maintenance of the fixed exchange rate is the responsibility of [[Danmarks Nationalbank]], the Danish [[central bank]]. As a consequence of the exchange rate policy, the bank must always adjust its interest rates to ensure a stable exchange rate and consequently cannot at the same time conduct [[monetary policy]] to stabilize e.g. domestic inflation or unemployment rates. This makes the conduct of [[stabilization policy]] fundamentally different from the situation in Denmark's neighbouring countries like Norway, Sweden, Poland and the United Kingdom, in which the central banks have a central stabilizing role. Denmark is presently the only OECD member country maintaining an independent currency with a fixed exchange rate. Consequently, the Danish krone is the only currency in the [[European Exchange Rate Mechanism]] II (ERM II),<ref name=WSJ>{{Cite news|url=https://www.wsj.com/articles/denmark-suspends-bond-issuance-to-protect-krones-peg-1422645705|title=Denmark Suspends Bond Issuance to Protect Krone's Peg|last=London|first=Charles Duxbury in Stockholm And Josie Cox in|date=30 January 2015|newspaper=Wall Street Journal|issn=0099-9660|access-date=31 December 2016}}</ref> before Bulgaria and Croatia joined in 2020 (the latter uses the euro since 2023)<ref>{{Cite journal|url=https://www.ecb.europa.eu/pub/economic-bulletin/articles/2021/html/ecb.ebart202008_01~035eb0fb07.en.html|website = European Central Bank|title=The European exchange rate mechanism (ERM II) as a preparatory phase on the path towards euro adoption – the cases of Bulgaria and Croatia| date=5 January 2021 |access-date=25 January 2024 | last1=Dorrucci | first1=Ettore | last2=Fidora | first2=Michael | last3=Gartner | first3=Christine | last4=Zumer | first4=Tina}}</ref>

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.<ref name=WSJ/> Danmarks Nationalbank reacted in various ways, chiefly by lowering its interest rates to record low levels. On 6 February 2015 the certificates of deposit rate, one of the four official Danish central bank rates, was lowered to −0.75%. In January 2016 the rate was raised to −0.65%, at which level it has been maintained since then.<ref>{{cite web| url = http://www.nationalbanken.dk/en/marketinfo/official_interestrates/Pages/default.aspx| title = Official interest rates. Website of Danmarks Nationalbank. |access-date=25 November 2018}}</ref>

Inflation in Denmark as measured by the official [[consumer price index]] of Statistics Denmark was 1.1% in 2017.<ref name=pris112/> Inflation has generally been low and stable for the last decades. Whereas in 1980 annual inflation was more than 12%, in the period 2000–2017 the average inflation rate was 1.8%.<ref name=pris112>{{cite web| url = http://www.statistikbanken.dk/pris112 |website=StatBank Denmark |title=Table PRIS112: CONSUMER PRICE INDEX (2015=100) BY MAIN FIGURES. |access-date=25 November 2018}}</ref>

==Government==

===Overall organization===

Since a local-government reform in 2007, the general government organization in Denmark is carried out on three administrative levels: central government, regions, and municipalities. Regions administer mainly health care services, whereas municipalities administer primary education and social services. Municipalities in principle independently levy income and property taxes, but the scope for total municipal taxation and expenditure is closely regulated by annual negotiations between the municipalities and the [[Finance Minister of Denmark]]. At the central government level, the [[Ministry of Finance (Denmark)|Ministry of Finance]] carries out the coordinating role of conducting economic policy. In 2012, the Danish parliament passed a Budget Law (effective from January 2014) which governs the over-all fiscal framework, stating among other things that the [[structural deficit]] must never exceed 0.5% of GDP,<ref name=oecdgov>{{cite web| url = https://www.oecd.org/gov/budgeting/Denmark.pdf| title = Denmark. OECD Journal on Budgeting, Volume 2015/2, OECD 2016}}</ref> and that Danish fiscal policy is required to be [[fiscal sustainability|sustainable]],<ref>{{cite web| url = https://dors.dk/vismandsrapporter/dansk-oekonomi-foraar-2017| title = Danish Economic Council: Danish Economy, Spring 2017. English Summary |page=297 |date=24 May 2017}}</ref> i.e. have a non-negative fiscal sustainability indicator. The Budget Law also assigned the role of [[EU Independent Fiscal Institutions Network|independent fiscal institution]] (IFI, informally known as "fiscal watchdog"<ref>{{cite web| url = https://dors.dk/english| title = Danish Economic Councils. Information in English on website of Danish Economic Councils. |access-date=24 November 2018 |date=30 September 2014}}</ref>) to the already-existing independent advisory body of the [[Danish Economic Councils]].<ref name=oecdgov/>

=== Budget and fiscal position ===

Danish fiscal policy is generally considered healthy. Government net debt was close to zero at the end of 2017, amounting to DKK 27.3&nbsp;billion, or 1.3% of GDP.<ref name=netdebt>{{in lang|da}} [https://www.dst.dk/da/Statistik/nyt/NytHtml?cid=26666 Nyt fra Danmarks Statistik nr. 126, 23 March 2018. Offentligt kvartalsregnskab 4. kvt. 2017: Fortsat fald i den offentlige finansielle nettogæld.]</ref><ref>{{cite journal |url=https://www.oecd-ilibrary.org/governance/general-government-financial-wealth/indicator/english_325ddad1-en |title=General government financial wealth |doi=10.1787/325ddad1-en |doi-access=free |website=OECDiLibrary|year=2018|url-access=subscription }}</ref> 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.<ref>{{cite web| url = http://statistikbanken.dk/edp3 |website=StatBank Denmark |title=Table EDP3: Denmark's EMU-debt and EMU-deficit by function (% of GDP) |access-date=24 November 2018}}</ref> The gross EMU-debt as percentage of GDP was the sixth-lowest among all 28 EU member countries, only Estonia, Luxembourg, Bulgaria, the Czech Republic and Romania having a lower gross debt.<ref name="edp2">{{cite web| url = http://statistikbanken.dk/edp2 |website=StatBank Denmark |title=Table EDP2: EU-countries, public finances by country and function (in % of GDP) |access-date=24 November 2018}}</ref> Denmark had a government budget surplus of 1.1% of GDP in 2017.<ref name=edp2/>

Long-run annual fiscal projections from the Danish government as well as the independent Danish Economic Council, taking into account likely future fiscal developments caused by demographic developments etc. (e.g. a likely ageing of the population caused by a considerable expansion of [[life expectancy]]), consider the Danish fiscal policy to be overly sustainable in the long run. In Spring 2018, the so-called Fiscal Sustainability Indicator was calculated by the Danish government and the Danish Economic Council to be 1.2% and 0.9% of GDP, respectively.<ref name=convergence>{{cite web| url = https://uk.fm.dk/publications/2018/denmarks-convergence-programme-2018| title = Denmarks Convergence Programme 2018. Website of Danish Ministry of Finance| date = 16 May 2018| access-date = 24 November 2018| archive-date = 25 November 2018| archive-url = https://web.archive.org/web/20181125031528/https://uk.fm.dk/publications/2018/denmarks-convergence-programme-2018| url-status = dead}}</ref><ref>{{cite web| url = https://dors.dk/vismandsrapporter/dansk-oekonomi-foraar-2018| title = Danish Economic Council: Danish Economy, Spring 2018. English Summary |page=242 | date = 14 May 2018}}</ref> This implies that under the assumptions employed in the projections, fiscal policy could be permanently loosened (via more generous public expenditures and/or lower taxes) by c. 1% of GDP while still maintaining a stable government debt-to-GDP ratio in the long run.

===Taxation===
{{Main|Taxation in Denmark}}

The tax level as well as the government expenditure level in Denmark ranks among the highest in the world, which is traditionally ascribed to the [[Nordic model]] of which Denmark is an example, including the [[welfare state]] principles which historically evolved during the 20th century. In 2022, the official Danish tax level amounted to 42.2% of GDP.<ref name=sktryk>{{cite web| url = http://statistikbanken.dk/sktryk |website=StatBank Denmark |title=SKTRYK: Tax level by national account groups |access-date=18 December 2022}}</ref> The all-record highest Danish tax level was 49.8% of GDP,<ref name=sktryk/> reached in 2014 because of high extraordinary one-time tax revenues caused by a reorganization of the Danish-funded pension system. The Danish tax-to-GDP-ratio of 42% was the seventh-highest among all OECD countries in 2022, after France, Norway, Austria, Finland, Italy and Belgium.<ref>[https://www.oecd.org/tax/revenue-statistics-2522770x.htm Revenue Statistics 2023. OECD.org, retrieved 18 December 2023.]</ref> The OECD average was 34%.<ref name=oecdrev>{{cite web| url = https://www.oecd.org/tax/revenue-statistics-denmark.pdf| title = OECD Revenue Statistics 2023 – Denmark |website=OECD |access-date=18 December 2023}}</ref> 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. A lower proportion of revenues in Denmark derive from taxes on corporate income and gains and property taxes than in OECD generally, whereas the proportion deriving from payroll taxes, VAT, and other taxes on goods and services correspond to the OECD average.<ref name=oecdrev/>

In 2016, the average [[marginal tax]] rate on labour income for all Danish tax-payers was 38.9%. The average marginal tax on personal capital income was 30.7%.<ref>{{cite web| url = https://www.skm.dk/english/facts-and-figures/marginal-tax-for-all-taxpayers| title = Marginal tax for all taxpayers |website=Danish Ministry of Taxation |date=8 April 2016 |access-date=24 November 2018}}</ref>

Professor of Economics at [[Princeton University]] [[Henrik Kleven]] has suggested that three distinct policies in Denmark and its Scandinavian neighbours imply that the high tax rates cause only relatively small distortions to the economy:  
* widespread use of third-party information reporting for tax collection purposes (ensuring a low level of [[tax evasion]])
* broad [[tax base]]s (ensuring a low level of [[tax avoidance]])
* a strong subsidization of goods that are complementary to working (ensuring a high level of labour force participation).<ref>{{cite journal|last1=Kleven |first1=Henrik Jacobsen |date=November 2014 |title=How Can Scandinavians Tax So Much? |journal=Journal of Economic Perspectives |volume=28 |issue=4 |pages=77–98 |doi=10.1257/jep.28.4.77|s2cid=54184316 |doi-access=free}}</ref>

in 2023, [[Denmark]] considered methods to increase taxes on energy dealers.<ref>{{cite web |date=4 May 2023 |title=Denmark mulls higher taxes for energy traders|url=https://www.montelnews.com/news/1497581/denmark-mulls-higher-taxes-for-energy-traders}}</ref>

===Government expenditure===

Parallel to the high tax level, government expenditure makes up a large part of GDP, and the government sector carries out many different tasks. By September 2018, 831,000 people worked in the general government sector, corresponding to 29.9% of all employees.<ref>{{cite web| url = http://statistikbanken.dk/lbesk02 |website=StatBank Denmark |title=LBESK02: EMPLOYEES (MONTH) BY SECTOR (2-GRP) |access-date=24 November 2018}}</ref> In 2017, total government expenditure amounted to 50.9% of GDP. Government consumption took up precisely 25% of GDP (e.g. education and health care expenditure), and government investment (infrastructure etc.) expenditure another 3.4% of GDP. Personal income transfers (for e.g. elderly or unemployed people) amounted to 16.8% of GDP.<ref name=convergence/>

Denmark has an unemployment insurance system called the A-kasse (''arbejdsløshedskasse''). This system requires a paying membership of a state-recognized unemployment fund. Most of these funds are managed by trade unions, and part of their expenses are financed through the tax system. Members of an A-kasse are not obliged to be members of a trade union.<ref name=CA-akasse>{{cite web|url=http://www.akasse.com/hvad-er-en-a-kasse|title=What is an A-kasse?|language=da|website=akasse.com|publisher=CA a-kasse|date=16 March 2011|access-date=16 May 2015}}</ref> 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.<ref>{{cite web|url=http://www.ma-kasse.dk/english/english-underside/|title=Introducing Masters Unemployment Insurance Fund |website=Magistrenes A-kasse (MA)|access-date=23 January 2015|archive-url=https://web.archive.org/web/20150123211233/http://www.ma-kasse.dk/english/english-underside/|archive-date=23 January 2015}}</ref> A person that is not a member of an A-kasse cannot receive [[Unemployment benefits in Denmark|unemployment benefits]].<ref>{{cite web|url=http://www.akasse.com/kontanthjaelp|title=A-kasse vs. kontanthjælp|language=da|website=a-kasse.com|publisher=CA a-kasse|date=21 March 2011|access-date= 16 May 2015}}</ref> Unemployment funds do not pay benefits to sick members, who will be transferred to a municipal social support system instead. Denmark has a countrywide, but municipally administered social support system against poverty, securing that qualified citizens have a minimum living income. All Danish citizens above 18 years of age can apply for some financial support if they cannot support themselves or their family. Approval is not automatic, and the extent of this system has generally been diminished since the 1980s. Sick people can receive some financial support throughout the extent of their illness. Their ability to work will be re-evaluated by the municipality after 5 months of illness.<ref>{{cite web|url=https://www.borger.dk/Sider/Oekonomisk-tilskud-fra-kommunen.aspx?segmentid=4db6b4e8-25dc-4447-9d91-7899f5d99eac#|title=Økonomisk tilskud fra kommunen [financial support from the municipality] |language=da|website=Borger.dk|publisher=The Danish State, Kommunernes Landsforening ([[Local Government Denmark]]) and Danske Regioner ([[Danish Regions]])|access-date=23 January 2015}}</ref><ref>{{cite web|url=http://bm.dk/Beskaeftigelsesomraadet/Ydelser/Sygedagpenge.aspx|title=Sygedagpenge [Social benefits for the sick]|language=da|publisher=Ministry of Employment|access-date=24 January 2015|archive-url=https://web.archive.org/web/20150128131857/http://bm.dk/Beskaeftigelsesomraadet/Ydelser/Sygedagpenge.aspx|archive-date=28 January 2015}}</ref>

The welfare system related to the labor market has experienced several reforms and financial cuts since the late 1990s due to political agendas for increasing the labor supply. Several reforms of the rights of the unemployed have followed up, partially inspired by the Danish Economic Council.<ref>{{cite web|url=http://ak-samvirke.dk/artikler/faa-overblikket-dagpengereformen|title=Få overblikket over dagpengereformen [Get an overview of the unemployment benefit reform]|language=da|publisher=AK-Samvirket|date=13 March 2013|access-date=24 January 2015|archive-url=https://web.archive.org/web/20150128112440/http://ak-samvirke.dk/artikler/faa-overblikket-dagpengereformen|archive-date=28 January 2015}} AK-Samvirket is an umbrella organization of the Danish unemployment funds.</ref> Halving the time unemployment benefits can be received from four to two years, and making it twice as hard to regain this right, was implemented in 2010 for example.

Disabled people can apply for permanent social pensions. The extent of the support depends on the ability to work, and people below 40 are not eligible unless deemed incapable of any kind of work.<ref>{{Cite web |url=http://bm.dk/da/Beskaeftigelsesomraadet/Ydelser/Foertidspension.aspx |title=Førtidspension |access-date=17 April 2018 |archive-url=https://web.archive.org/web/20180418032602/http://bm.dk/da/Beskaeftigelsesomraadet/Ydelser/Foertidspension.aspx |archive-date=18 April 2018}}</ref>

== Industries ==
=== Agriculture ===
[[File:Rømø - Kühe an der Tränke.jpg|thumb|Pasture grazing cattle ([[Rømø]])]]

Agriculture was once the most important industry in Denmark. Nowadays, it is of minor economic importance. In 2016, 62,000 people, or 2.5% of all employed people worked in agriculture and horticulture. Another 2,000 people worked in [[fishing industry in Denmark|fishing]].<ref name=ras300>{{cite web| url = http://statistikbanken.dk/ras300 |website=StatBank Denmark |title=Table RAS300: EMPLOYED (END NOVEMBER) BY INDUSTRY (DB07), SOCIOECONOMIC STATUS, AGE AND SEX. |access-date=26 November 2018}}</ref> As value added per person is relatively low, the share of national value added is somewhat lower. Total gross value added in agriculture, forestry and fishing amounted to 1.6% of total output in Denmark (in 2017).<ref name=nabp10/> Despite this, Denmark is still home to various types of agricultural production. Within animal husbandry, it includes dairy and beef cattle, pigs, poultry and fur animals – all sectors that produce mainly for export. Regarding vegetable production, Denmark is a leading producer of grass-, clover- and horticultural seeds. The agriculture and food sector as a whole represented 25% of total Danish commodity exports in 2015.<ref>{{Cite web|url=https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/dnk/all/show/2015/|title=Products exported by Denmark (2015)|website=The Observatory of Economic Complexity|access-date=26 April 2018}}</ref>

63% of the land area of Denmark is used for agricultural production – the highest share in the world according to a report from [[University of Copenhagen]] in 2017.<ref>{{in lang|da}} [http://www.ft.dk/samling/20161/almdel/mof/bilag/230/1717575.pdf ''Udviklingen af landbrugslandet gennem seks årtier fra 1954 til 2025'', Miljø- og Fødevareudvalget 2016–17 MOF Alm.del Bilag 230, Folketinget.dk 2017]</ref> The Danish agricultural industry is historically characterized by freehold and [[family farm|family ownership]], but due to structural development farms have become fewer and larger. In 2020 the number of farms was approximately 33,000,<ref>{{cite web| url = http://statistikbanken.dk/bdf11 |website=StatBank Denmark |title=Table BDF11: Farms by region, unit, type of farms and area. |access-date=28 November 2018}}</ref> of which approximately 10,000 were owned by full-time farmers.<ref>{{in lang|da}} {{cite web |url=https://landbrugsavisen.dk/f%C3%A6rre-end-10000-heltids-landbrug-tilbage-i-danmark |title=Færre end 10.000 heltids-landbrug tilbage i Danmark |website=Landbrugsavisen.dk |date=12 July 2017 |access-date=28 November 2018}}</ref>

==== Animal production ====
The tendency toward fewer and larger farms has been accompanied by an increase in animal production, using fewer resources per produced unit.

The number of dairy farmers has reduced to about 3,800 with an average herd size of 150 cows. The milk quota is 1,142 tonnes. More than half of the cows live in new loose-housing systems. Export of dairy products accounts for more than 20 percent of the total Danish agricultural export. The total number of cattle in 2011 was approximately 1.5&nbsp;million. Of these, 565,000 were dairy cows and 99,000 were suckler cows. The yearly number of slaughtering of beef cattle is around 550,000.

For more than 100 years the production of pigs and pig meat was a major source of income in Denmark. Approximately 90 percent of the production is exported. This accounts for almost half of all agricultural exports and for around 5 percent of Denmark's total exports. About 4,200 farmers produce 28&nbsp;million pigs annually. Of these, 20.9&nbsp;million are slaughtered in Denmark.

[[Fur farming|Fur animal production]] on an industrial scale started in the 1930s in Denmark. Prior to a government-mandated culling during the [[COVID-19 pandemic in Denmark|COVID-19 pandemic]], Denmark was the world's largest producer of [[mink]] furs, with 1,400 mink farmers fostering 17.2&nbsp;million mink and producing around 14&nbsp;million furs of the highest quality every year (see [[mink industry in Denmark]]).<ref name="L&F">{{cite web|url=http://www.lf.dk/lf/Viden%20om/Landbrugsproduktion/Husdyr/Mink |title=Mink |publisher=Landbrug & Fødevarer |language=da|access-date=25 January 2016}} "Langbrug & Fødevarer" is the largest interest organization for the Danish agricultural and food industry.</ref> Approximately 98 percent of the skins sold at Kopenhagen Fur Auction were exported. Fur ranked as Danish agriculture's third largest export article, at more than DKK 7&nbsp;billion annually. The number of farms peaked in the late 1980s at more than 5,000 farms, but the number has declined steadily since, as individual farms grew in size.<ref name="L&F"/> Danish mink farmers claim their business to be [[sustainable production|sustainable]], feeding the mink food industry waste and using all parts of the dead animal as meat, bone meal and biofuel. Special attention is given to the welfare of the mink, and regular "Open Farm" arrangements are made for the general public.<ref name="DM">{{cite web|url=http://www.danskeminkavlere.dk/|title=Danske minkfarmere [Danish Mink Farmers]|publisher=Danske Minkavlere|language=da|access-date=25 January 2016|archive-date=15 May 2019|archive-url=https://web.archive.org/web/20190515144246/https://www.danskeminkavlere.dk/|url-status=dead}} "Danske Minkavlere" is the business organization of the Danish mink farming industry.</ref> Mink thrive in, but are not a native to Denmark, and it is considered an [[invasive species]]. [[American Mink]] are now widespread in Denmark and continues to cause problems for the native wildlife, in particular waterfowl.<ref>{{cite web|url=http://naturstyrelsen.dk/naturbeskyttelse/artsleksikon/dyr/pattedyr/rovdyr/mink/|title=Mink|language=da|access-date=25 January 2016|archive-url=https://web.archive.org/web/20160131120027/http://naturstyrelsen.dk/naturbeskyttelse/artsleksikon/dyr/pattedyr/rovdyr/mink/|archive-date=31 January 2016}}</ref> Denmark also has a small production of fox, [[chinchilla]] and rabbit furs.<ref name="DM"/>

Two hundred professional producers are responsible for the Danish egg production, which was 66 million kg in 2011. Chickens for slaughter are often produced in units with 40,000 broilers. In 2012, 100&nbsp;million chickens were slaughtered. In the minor productions of poultry, 13&nbsp;million ducks, 1.4&nbsp;million geese and 5.0&nbsp;million turkeys were slaughtered in 2012.

==== Organic production ====
[[Organic farming]] and production has increased considerably and continuously in Denmark since 1987 when the first official regulations of this particular agricultural method came into effect. In 2017, the export of organic products reached DK 2.95&nbsp;billion, a 153% increase from 2012 five years earlier, and a 21% increase from 2016. The import of organic products has always been higher than the exports though and reached DK 3.86&nbsp;billion in 2017. After some years of stagnation, close to 10% of the cultivated land is now categorized as organically farmed, and 13.6% for the dairy industry, as of 2017.<ref>{{cite web|url=https://www.dst.dk/en/Statistik/emner/erhvervslivet-paa-tvaers/oekologi#|title=Organic production and trade|publisher=Statistics Denmark|access-date=6 January 2019}}</ref>

Denmark has the highest retail consumption share for organic products in the world. In 2017, the share was at 13.3%, accounting for a total of DKK 12.1&nbsp;billion.<ref>{{cite web|url=http://organicdenmark.com/organics-in-denmark/facts-and-figures|title=World leading organic nation|publisher=Organic Denmark|date=10 August 2018|access-date=6 January 2019}}</ref>

=== Natural resource extraction ===
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. Production has decreased in recent years, though. Whereas in 2006 output (measured as [[gross value added]] or GVA) in mining and quarrying industries made up more than 4% of Denmark's total GVA, in 2023 it amounted to 1.1%.<ref name=nabp10>{{cite web| url = http://statistikbanken.dk/nabp10 |website=StatBank Denmark |title=Table NABP10: 1–2.1.1 Production and generation of income (10a3-grouping) by transaction, industry and price unit. |access-date=17 September 2024}}</ref> The sector is very capital-intensive, so the share of employment is much lower: About 1,000 persons worked in the oil and gas extraction sector in 2022, and another 1,000 persons in extraction of gravel and stone, or in total less than 0.1% of total employment in Denmark.<ref>{{cite web| url = http://statistikbanken.dk/ras300 |website=StatBank Denmark |title=Table RAS300: EMPLOYED (END NOVEMBER) BY INDUSTRY (DB07), SOCIOECONOMIC STATUS, AGE AND SEX. |access-date=17 September 2024}}</ref>

=== Engineering and high-tech ===
Denmark houses a number of significant engineering and high-technology firms, within the sectors of industrial equipment, aerospace, robotics, pharmaceutical and electronics.

==== Electronics and industrial equipment ====
[[Danfoss]], headquartered in [[Nordborg]], designs and manufactures industrial electronics, heating and cooling equipment, as well as drivetrains and power solutions.<ref>{{Cite web|url=https://www.danfoss.com/da-dk/about-danfoss/company/history/|title=Danfoss – Rejsen mod Engineering Tomorrow}}</ref>

Denmark is also a large exporter of pumps, with the company [[Grundfos]] holding 50% of the market share, manufacturing circulation pumps.<ref>{{Cite web|url=https://borsen.dk/nyheder/generelt/artikel/1/112738/danish_grundfos_the_worlds_largest_pump_group.html|title=Danish Grundfos the world's largest pump group|date=13 July 2007}}</ref>

=== Manufacturing ===
In 2017, the total output (gross value added) in the manufacturing industry amounted to 14.4% of total output in Denmark.<ref name=nabp10/> 325,000 people or a little less than 12% of all employed persons worked in manufacturing (including utilities, mining and quarrying) in 2016.<ref name=ras300/> Main sub-industries are manufacture of pharmaceuticals, machinery, and food products.<ref>{{cite web| url = http://statistikbanken.dk/NABP69 |website=StatBank Denmark |title=Table NABP69: 1–2.1.1 Production and generation of income (69-grouping) by transaction, industry and price unit. |access-date=28 November 2018}}</ref>

=== Service industry ===
In 2017, the total output (gross value added) in the service industry amounted to 75.2% of total output in Denmark,<ref name=nabp10/> and 79.9% of all employed people worked in this industry in 2016.<ref name=ras300/> Apart from public administration, education and health services, main service sub-industries were trade and transport services, and business services.<ref name=ras300/>

=== Transport ===
{{Main|Transport in Denmark}}

[[File:Copenhagen-Central-Station-København-H.jpg|thumb|left|250x250px|Copenhagen Central Station with [[S-Trains]]]]

Significant investment has been made in building road and rail links between [[Copenhagen]] and [[Malmö]], Sweden (the [[Øresund Bridge]]), and between [[Zealand (Denmark)|Zealand]] and [[Funen]] (the [[Great Belt Fixed Link]]). The [[Copenhagen Malmö Port]] was also formed between the two cities as the common port for the cities of both nations.

The main railway operator is [[DSB (railway company)|Danske Statsbaner]] (Danish State Railways) for passenger services and [[DB Schenker Rail]] for freight trains.<ref>{{Cite web|url=https://www.dsb.dk/om-dsb/virksomheden/|title=Virksomheden|website=DSB.dk|publisher=DSB|language=da|access-date=18 December 2016}}</ref> The [[railway tracks]] are maintained by [[Banedanmark]]. Copenhagen has a small Metro system, the [[Copenhagen Metro]] and the greater Copenhagen area has an extensive electrified suburban railway network, the [[S-train]].
 
Private vehicles are increasingly used as a [[Mode of transport|means of transport]]. New cars are taxed by means of a registration tax (85% to 150%) and VAT (25%). The motorway network now covers 1,300&nbsp;km.<ref>{{cite web| url = http://statistikbanken.dk/VEJ11 |website=StatBank Denmark |title=Table VEJ11: Road network 1 January by part of the country and type of road. |access-date=28 November 2018}}</ref>

Denmark is in a strong position in terms of integrating fluctuating and unpredictable energy sources such as wind power in the grid. It is this knowledge that Denmark now aims to exploit in the transport sector by focusing on intelligent battery systems ([[Vehicle-to-grid|V2G]]) and [[Electric vehicle|plug-in vehicles]].<ref>{{cite web|url=http://www.energymap.dk/Technology-Areas/Intelligent-Energy/Plug-in-and-Electrical-Vehicles |title=Plug-in and Electrical Vehicles |publisher=EnergyMap.dk |access-date=15 June 2012 |archive-url=https://web.archive.org/web/20110719122621/http://www.energymap.dk/Technology-Areas/Intelligent-Energy/Plug-in-and-Electrical-Vehicles |archive-date=19 July 2011}}</ref>

=== Energy ===
{{Main|Energy in Denmark}}

[[File:Middelgrunden wind farm 2009-07-01 edit filtered.jpg|thumb|right|Denmark has invested heavily in windfarms. In 2015, 42% of the domestic electricity consumption comes from wind.]]

[[File:Fossil fuel consumption in Denmark.svg|thumb|Fossil fuel consumption in Denmark]]

Denmark has changed its energy consumption from 99% fossil fuels (92% oil (all imported) and 7% coal) and 1% biofuels in 1972 to 73% fossil fuels (37% oil (all domestic), 18% coal, 18% natural gas (all domestic)), and 27% renewables (largely biofuels) in 2015. The goal is a full independence of [[fossil fuels]] by 2050. This drastic change was initially inspired largely by the discovery of Danish oil and gas reserves in the North Sea in 1972 and the [[1973 oil crisis]].<ref>{{cite web|url=http://nyenergi.nu/#anc-tidslinje/1972|title=Energiomstilling 2050: 1972|work= [[Danish Energy Agency]]|date=31 October 2021}}</ref> The course took a giant leap forward in 1984, when the Danish [[North Sea oil]] and gas fields, developed by native industry in close cooperation with the state, started major production.<ref>{{cite web|url=http://nyenergi.nu/#anc-tidslinje/1984 |title=Energiomstilling 2050: 1984|work= [[Danish Energy Agency]]|date=31 October 2021}}</ref> In 1997, Denmark became self-sufficient with energy,<ref>In this context, "self-sufficient" means that the domestic energy production is equal to the energy consumption in terms of [[joule]]s.</ref> and the overall {{CO2}} emission from the energy sector began to fall by 1996.<ref>{{cite web|url=http://nyenergi.nu/#anc-tidslinje/1997 |title=Energiomstilling 2050: 1997|work= [[Danish Energy Agency]]|date=31 October 2021}}</ref> Wind energy contribution to the total energy consumption has risen from 1% in 1997 to 5% in 2015.<ref name="totusindeogfemten">{{cite web|url=http://nyenergi.nu/#anc-tidslinje/2015 |title=Energiomstilling 2050: 2015|work= [[Danish Energy Agency]]|date=31 October 2021}}</ref>

Since 2000, Denmark has increased gross domestic product (GDP) and at the same time decreased energy consumption.<ref>Rasmus Tengvad. [http://www.danskenergi.dk/~/media/Indblik/EnergiforbrugFalder/Indblik-Det-danske-energiforbrug-paa-rekordlavt-niveau.ashx Det danske energiforbrug på rekordlavt niveau] {{Webarchive|url=https://web.archive.org/web/20160119095338/http://www.danskenergi.dk/~/media/Indblik/EnergiforbrugFalder/Indblik-Det-danske-energiforbrug-paa-rekordlavt-niveau.ashx |date=19 January 2016}} ''Dansk Energi'', 30 January 2015.</ref> Since 1972, the overall energy consumption has dropped by 6%, even though the GDP has doubled in the same period.<ref name="totusindeogfemten"/><!--expand: part of the decrease is due to the difference between [[Primary energy]] and secondary energy--> Denmark had the 6th best [[energy security]] in the world in 2014.<ref>"[http://reports.weforum.org/global-energy-architecture-performance-index-2014/global-rankings/#view/fn-10 Global Rankings]", Accessed: 24 January 2016.</ref> 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.<ref>{{cite web|url=http://www.information.dk/telegram/287608|title=Grønne afgifter gavner konkurrenceevne|work=[[Dagbladet Information]]|date=12 December 2011|quote=Danish industry has gained on the use of green taxes (dansk erhvervsliv har vundet på brugen af grønne afgifter)}}</ref> The so-called "green taxes" have been broadly criticised partly for being higher than in other countries, but also for being more of a tool for gathering government revenue than a method of promoting "greener" behaviour.<ref>{{cite web|url=http://www.information.dk/448460|title=Dansk Industri til angreb på regeringens grønne afgifter|work=[[Dagbladet Information]]|date=19 January 2013|quote=We have a tax system that goes beyond environment reasons to also fill up the state coffers (idag er vi imidlertid endt med et afgiftssystem, der går ud over den rent miljømæssige begrundelse og også er blevet en måde at fylde statskassen op.)}}</ref><ref>{{cite web|url=http://www.information.dk/478333|title=EL: Grønne afgifter spænder ben for grøn omstilling|work=[[Dagbladet Information]]|date=19 January 2013|quote=But in reality they also help pay for schools, hospitals and police (Men i virkeligheden er de også med til at betale for skoler, sygehuse og politi)}}</ref>

{| class="wikitable" 
|+ ''' 2015 overall energy taxes, in billions [[Danish kroner|DKK]]<ref name=tax2015>[http://www.skm.dk/skattetal/statistik/provenuoversigter/afgifter-provenuet-af-afgifter-og-moms-2009-2016 Afgifter – provenuet af afgifter og moms 2009–2016], ''[[Danish Ministry of Taxation]]'', 2015.</ref>'''
! || Oil || Gasoline || Natural gas || Coal || Electricity 
|-
| [[Excise]]&[[Value added tax|VAT]] || 9.3 || 7.3 || 3.3 || 2.5 || 11.7
|} <!--expand with production/consumption values in DKK or €-->

Denmark has low electricity costs (including [[Public service obligation|costs for cleaner energy]]) in EU,<ref>[http://www.ens.dk/sites/ens.dk/files/energistyrelsen/Nyheder/2015/notat_elprismetode_30062015_web.pdf Forbedring af den nationale elprisstatistik for erhverv] page 7. ''[[Danish Energy Agency]]''</ref> but general taxes (11.7&nbsp;billion DKK in 2015)<ref name="tax2015"/> make the electricity price for households the highest in Europe.<ref name=esIndu>{{cite web| url = http://ec.europa.eu/eurostat/statistics-explained/index.php/Electricity_price_statistics#Electricity_prices_for_industrial_consumers| title = Electricity prices for household consumers (taxes included), first half 2018 (EUR per kWh). Eurostat. |access-date=28 November 2018}}</ref> {{as of|2015}}, Denmark has no environmental tax on electricity.<ref>[http://wds.iea.org/wds/pdf/EPT_countrynotes.pdf Energy Prices and Taxes, Country Notes, 3rd Quarter 2015], pp.26-27. ''[[International Energy Agency]]'', 2015. [https://web.archive.org/web/20160119095339/http://wds.iea.org/wds/pdf/EPT_countrynotes.pdf Archive]</ref>

Denmark is a long-time leader in wind energy and a prominent exporter of [[Vestas]] and [[Siemens Wind Power|Siemens]] wind turbines, and in 2019 Denmark's exports of wind-turbine technology and services amounted to {{euro}}8.9 billion.<ref>{{cite web | publisher= State of Green | title=Danish exports of green technology increased by billions in 2019 | date=5 May 2020 | url=https://stateofgreen.com/en/news/danish-exports-of-green-technology-increased-by-billions-in-2019/ | access-date=5 January 2023}}</ref> It has integrated fluctuating and less predictable energy sources such as wind power into the grid. Wind produced the equivalent of 43% of Denmark's total electricity consumption in 2017.<ref name=euractiv1>{{cite web|url=http://www.euractiv.com/sections/climate-environment/denmark-breaks-its-own-world-record-wind-energy-321002|title=Denmark breaks its own world record in wind energy|work=EurActiv – EU News & policy debates, across languages|date=15 January 2016}}</ref><ref>{{cite web|url=https://ing.dk/artikel/2017-var-rekordaar-dansk-vindenergi-209683|title=2017 var rekordår for dansk vindenergi|publisher=Ingeniøren.dk|date=3 January 2018|language=da}}</ref> The share of total energy production is smaller: In 2015, wind accounted for 5% of total Danish energy production.<ref name="totusindeogfemten"/>

[[Energinet.dk]] is the Danish national [[transmission system operator]] for electricity and natural gas. The electricity grids of western Denmark and eastern Denmark were not connected until 2010 when the 600MW [[Great Belt Power Link]] went into operation.

[[Cogeneration]] plants are the norm in Denmark, usually with [[district heating]] which serves almost 1.9&nbsp;million households (January 1, 2025), 68% of all households.

[[Waste-to-energy]] incinerators produce mostly heating and hot water. [[:da:Vestforbrænding|Vestforbrænding]] in [[Glostrup Municipality]] operates Denmark's largest incinerator, a cogeneration plant which supplies electricity to 80,000 households and heating equivalent to the consumption in 63,000 households (2016). [[Amager Bakke]] is an example of a new incinerator.

==Greenland and the Faroe Islands==

{{Main|Economy of Greenland|Economy of the Faroe Islands}}
In addition to Denmark proper, the Kingdom of Denmark comprises two [[autonomous administrative division|autonomous]] constituent countries in the [[North Atlantic Ocean]]: [[Greenland]] and the [[Faroe Islands]]. Both use the Danish krone as their currency, but form separate economies, having separate [[national accounts]] etc. Both countries receive an annual fiscal subsidy from Denmark which amounts to about 25% of Greenland's GDP and 11% of Faroese GDP.<ref>{{cite web| url = https://www.cia.gov/the-world-factbook/countries/greenland/| title = Greenland Economy – overview. The World Factbook, CIA, retrieved 7 December 2018.| date = 12 July 2022}}</ref><ref>{{cite web| url = https://www.cia.gov/the-world-factbook/countries/faroe-islands/| title = Faroe Islands Economy – overview. The World Factbook, CIA, retrieved 7 December 2018.| date = July 2022}}</ref> For both countries, the [[fishing industry]] is a major economic activity.

Neither Greenland nor the Faroe Islands are members of the European Union. Greenland left the [[European Economic Community]] in 1986, and the Faroe Islands declined membership in 1973, when Denmark joined.<ref>{{cite web | title = The Faroe Islands and the European Union | website = www.government.fo | publisher = The Government of the Faroe Islands | url = http://www.government.fo/foreign-relations/missions-of-the-faroe-islands-abroad/the-mission-of-the-faroes-to-the-european-union/the-faroe-islands-and-the-european-union/ | access-date = 23 January 2017}}</ref><ref>{{cite web | title = What is Greenland's relationship with the EU? | website = english.eu.dk | publisher = The Danish Parliament EU Information Centre | url = http://english.eu.dk/en/faq/faq/greenland | access-date=23 January 2017 | archive-url = https://web.archive.org/web/20170208224730/http://english.eu.dk/en/faq/faq/greenland | archive-date=8 February 2017}}</ref>

== Data ==
The following table shows the main economic indicators in 1980–2023. Inflation under 2% is in green.<ref>{{Cite web |title=World Economic Outlook Database |url=https://www.imf.org/en/Publications/WEO/weo-database/2023/October/weo-report?c=128,&s=PPPGDP,PPPPC,&sy=1980&ey=2028&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |website=IMF}}</ref>
{{static row numbers}}{{sticky header}}
{| class="wikitable sortable sticky-header" style="text-align:center;"
!Year
!GDP<br /><small>(in bn. US$ PPP)</small>
!GDP per capita<br /><small >(in US$ PPP)</small>
!GDP<br /> (in bn. US$ <br />nominal)
!GDP growth<br /><small>(real)</small>
!Inflation rate<br /><small>(in Percent)</small>
!Unemployment <br /><small>(in Percent)</small>
!Government debt<br /><small>(in % of GDP)</small>
|-
|1980
|60.8
|11,870
|71.1
|{{Decrease}}−0.5%
|{{IncreaseNegative}}11.3%
|5.3%
|n/a
|-
|1981
|{{Increase}}66.1
|{{Increase}}12,903
|{{Decrease}}61.9
|{{Decrease}}−0.7%
|{{IncreaseNegative}}11.7%
|{{IncreaseNegative}}7.1%
|n/a
|-
|1982
|{{Increase}}72.8
|{{Increase}}14,217
|{{Decrease}}60.4
|{{Increase}}3.7%
|{{IncreaseNegative}}10.1%
|{{IncreaseNegative}}7.6%
|n/a
|-
|1983
|{{Increase}}77.6
|{{Increase}}15,165
|{{Increase}}60.6
|{{Increase}}2.6%
|{{IncreaseNegative}}6.8%
|{{decreasePositive}}8.4%
|n/a
|-
|1984
|{{Increase}}83.7
|{{Increase}}16,382
|{{Decrease}}59.1
|{{Increase}}4.2%
|{{IncreaseNegative}}6.3%
|{{decreasePositive}}7.9%
|n/a
|-
|1985
|{{Increase}}89.9
|{{Increase}}17,580
|{{Increase}}62.7
|{{Increase}}4.0%
|{{IncreaseNegative}}4.7%
|{{decreasePositive}}6.6%
|n/a
|-
|1986
|{{Increase}}96.2
|{{Increase}}18,794
|{{Increase}}88.1
|{{Increase}}4.9%
|{{IncreaseNegative}}3.7%
|{{decreasePositive}}5.0%
|n/a
|-
|1987
|{{Increase}}98.8
|{{Increase}}19,276
|{{Increase}}109.4
|{{Increase}}0.3%
|{{IncreaseNegative}}4.0%
|{{IncreaseNegative}}5.0%
|n/a
|-
|1988
|{{Increase}}102.3
|{{Increase}}19,936
|{{Increase}}115.6
|{{Steady}}0.0%
|{{IncreaseNegative}}4.5%
|{{IncreaseNegative}}5.7%
|n/a
|-
|1989
|{{Increase}}107.0
|{{Increase}}20,849
|{{Decrease}}112.4
|{{Increase}}0.6%
|{{IncreaseNegative}}4.8%
|{{IncreaseNegative}}6.8%
|n/a
|-
|1990
|{{Increase}}112.6
|{{Increase}}21,924
|{{Increase}}138.2
|{{Increase}}1.5%
|{{IncreaseNegative}}2.6%
|{{IncreaseNegative}}7.2%
|n/a
|-
|1991
|{{Increase}}118.0
|{{Increase}}22,932
|{{Increase}}139.2
|{{Increase}}1.4%
|{{IncreaseNegative}}2.4%
|{{IncreaseNegative}}7.9%
|n/a
|-
|1992
|{{Increase}}123.1
|{{Increase}}23,842
|{{Increase}}152.9
|{{Increase}}2.0%
|{{IncreaseNegative}}2.1%
|{{IncreaseNegative}}8.6%
|66.8
|-
|1993
|{{Increase}}126.0
|{{Increase}}24,322
|{{Decrease}}143.2
|{{Steady}}0.0%
|{{Increase}}1.2%
|{{IncreaseNegative}}9.5%
|{{IncreaseNegative}}78.6%
|-
|1994
|{{Increase}}135.6
|{{Increase}}26,084
|{{Increase}}156.2
|{{Increase}}5.3%
|{{Increase}}2.0%
|{{decreasePositive}}7.7%
|{{decreasePositive}}75.2%
|-
|1995
|{{Increase}}142.6
|{{Increase}}27,338
|{{Increase}}185.0
|{{Increase}}3.0%
|{{IncreaseNegative}}2.0%
|{{decreasePositive}}6.8%
|{{decreasePositive}}71.4%
|-
|1996
|{{Increase}}149.4
|{{Increase}}28,454
|{{Increase}}187.6
|{{Increase}}2.9%
|{{IncreaseNegative}}2.2%
|{{decreasePositive}}6.3%
|{{decreasePositive}}68.3%
|-
|1997
|{{Increase}}156.9
|{{Increase}}29,752
|{{Decrease}}173.5
|{{Increase}}3.3%
|{{IncreaseNegative}}2.2%
|{{decreasePositive}}5.2%
|{{decreasePositive}}64.3%
|-
|1998
|{{Increase}}162.2
|{{Increase}}30,638
|{{Increase}}177.0
|{{Increase}}2.2%
|{{Increase}}1.8%
|{{decreasePositive}}4.9%
|{{decreasePositive}}60.3%
|-
|1999
|{{Increase}}169.4
|{{Increase}}31,873
|{{Increase}}178.0
|{{Increase}}2.9%
|{{IncreaseNegative}}2.5%
|{{IncreaseNegative}}5.1%
|{{decreasePositive}}56.8%
|-
|2000
|{{Increase}}179.7
|{{Increase}}33,713
|{{Decrease}}164.2
|{{Increase}}3.7%
|{{IncreaseNegative}}2.9%
|{{decreasePositive}}4.3%
|{{decreasePositive}}52.4%
|-
|2001
|{{Increase}}185.3
|{{Increase}}34,631
|{{Increase}}164.8
|{{Increase}}0.8%
|{{IncreaseNegative}}2.4%
|{{IncreaseNegative}}4.5%
|{{decreasePositive}}48.5%
|-
|2002
|{{Increase}}189.0
|{{Increase}}35,209
|{{Increase}}178.6
|{{Increase}}0.5%
|{{IncreaseNegative}}2.4%
|{{IncreaseNegative}}4.6%
|{{IncreaseNegative}}49.1%
|-
|2003
|{{Increase}}193.5
|{{Increase}}35,942
|{{Increase}}218.1
|{{Increase}}0.4%
|{{IncreaseNegative}}2.1%
|{{IncreaseNegative}}5.4%
|{{decreasePositive}}46.2%
|-
|2004
|{{Increase}}204.0
|{{Increase}}37,792
|{{Increase}}251.4
|{{Increase}}2.7%
|{{Increase}}1.1%
|{{IncreaseNegative}}5.5%
|{{decreasePositive}}44.2%
|-
|2005
|{{Increase}}215.3
|{{Increase}}39,789
|{{Increase}}264.5
|{{Increase}}2.3%
|{{Increase}}1.8%
|{{decreasePositive}}4.8%
|{{decreasePositive}}37.4%
|-
|2006
|{{Increase}}230.6
|{{Increase}}42,495
|{{Increase}}282.9
|{{Increase}}3.9%
|{{Increase}}1.9%
|{{decreasePositive}}3.9%
|{{decreasePositive}}31.5%
|-
|2007
|{{Increase}}239.0
|{{Increase}}43,881
|{{Increase}}319.4
|{{Increase}}0.9%
|{{Increase}}1.7%
|{{decreasePositive}}3.8%
|{{decreasePositive}}27.3%
|-
|2008
|{{Increase}}242.3
|{{Increase}}44,261
|{{Increase}}353.4
|{{Decrease}}−0.5%
|{{IncreaseNegative}}3.4%
|{{decreasePositive}}3.5%
|{{IncreaseNegative}}33.3%
|-
|2009
|{{Decrease}}232.0
|{{Decrease}}42,085
|{{Decrease}}321.2
|{{Decrease}}−4.9%
|{{Increase}}1.3%
|{{IncreaseNegative}}6.0%
|{{IncreaseNegative}}40.2%
|-
|2010
|{{Increase}}239.1
|{{Increase}}43,204
|{{Increase}}322.0
|{{Increase}}1.9%
|{{IncreaseNegative}}2.3%
|{{IncreaseNegative}}7.5%
|{{IncreaseNegative}}42.6%
|-
|2011
|{{Increase}}247.4
|{{Increase}}44,483
|{{Increase}}344.0
|{{Increase}}1.3%
|{{Increase}}1.1%
|{{IncreaseNegative}}7.6%
|{{IncreaseNegative}}46.1%
|-
|2012
|{{Increase}}250.5
|{{Increase}}44,893
|{{Decrease}}327.1
|{{Increase}}0.2%
|{{IncreaseNegative}}2.4%
|{{decreasePositive}}7.5%
|{{decreasePositive}}44.9%
|-
|2013
|{{Increase}}262.4
|{{Increase}}46,829
|{{Increase}}343.6
|{{Increase}}0.9%
|{{Increase}}0.8%
|{{decreasePositive}}7.0%
|{{decreasePositive}}44.0%
|-
|2014
|{{Increase}}270.3
|{{Increase}}48,040
|{{Decrease}}353.0
|{{Increase}}1.6%
|{{Increase}}0.6%
|{{decreasePositive}}6.5%
|{{decreasePositive}}43.9%
|-
|2015
|{{Increase}}278.8
|{{Increase}}49,265
|{{Decrease}}302.7
|{{Increase}}1.6%
|{{Increase}}0.5%
|{{decreasePositive}}6.2%
|{{decreasePositive}}39.6%
|-
|2016
|{{Increase}}297.7
|{{Increase}}52,160
|{{Increase}}313.1
|{{Increase}}2.0%
|{{Increase}}0.3%
|{{Steady}}6.2%
|{{decreasePositive}}37.8%
|-
|2017
|{{Increase}}320.1
|{{Increase}}55,673
|{{Increase}}332.1
|{{Increase}}2.8%
|{{Increase}}1.1%
|{{decreasePositive}}5.8%
|{{decreasePositive}}35.9%
|-
|2018
|{{Increase}}334.3
|{{Increase}}57,821
|{{Increase}}334.2
|{{Increase}}2.0%
|{{Increase}}0.7%
|{{decreasePositive}}5.2%
|{{decreasePositive}}34.0%
|-
|2019
|{{Increase}}345.3
|{{Increase}}59,480
|{{Increase}}346.5
|{{Increase}}1.5%
|{{Increase}}0.7%
|{{decreasePositive}}5.0%
|{{decreasePositive}}33.7%
|-
|2020
|{{Decrease}}341.4
|{{Decrease}}58,628
|{{Increase}}354.8
|{{Decrease}}−2.4%
|{{Increase}}0.3%
|{{IncreaseNegative}}5.6%
|{{IncreaseNegative}}42.3%
|-
|2021
|{{Increase}}381.1
|{{Increase}}65,261
|{{Increase}}405.7
|{{Increase}}6.8%
|{{Increase}}1.9%
|{{decreasePositive}}5.1%
|{{decreasePositive}}36.9%
|-
|2022
|{{Increase}}419.0
|{{Increase}}71,332
|{{Decrease}}401.1
|{{Increase}}2.7%
|{{IncreaseNegative}}8.5%
|{{decreasePositive}}4.5%
|{{decreasePositive}}29.7%
|-
|2023
|{{Increase}}441.8
|{{Increase}}74,958
|{{Increase}}420.8
|{{Increase}}1.7%
|{{IncreaseNegative}}4.1%
|{{IncreaseNegative}}5.0%
|{{IncreaseNegative}}30.1%
|}

==Major companies==
{{See also|List of largest Danish companies}}
Denmark has fostered and is home to many multi-national companies. Many of the largest are interdisciplinary with business – and sometimes research activities – in several fields. The most notable companies include:

;Agribusiness
* [[Arla Foods]] (dairy)
* [[Dansk Landbrugs Grovvareselskab]] (DLG) (agricultural coop (Danish ''[[:da:Andelsselskab med begrænset ansvar|a.m.b.a.]]''). Main focus is agricultural supply and trade)
* [[Danish Crown AmbA|Danish Crown]] (meat products)

;Banking
* [[Danske Bank]] (commercial banking and mortgage lending)
* [[Nordea]]
* [[Nykredit]]
* [[Jyske Bank]]
* [[Saxo Bank]]
* [[Sydbank]]

;Clothing and attire
* [[ECCO]] (shoe and leather accessories manufacturer and retailer)
* [[Bestseller (company)|Bestseller]]

;Construction
* [[FLSmidth]] (global supplier of equipment and services to the cement and [[minerals]] industries)
* [[Rockwool International|Rockwool]] ([[mineral wool]] producer with production in 28 countries)
* [[Velux]] ([[window]]s and [[Skylight (window)|skylight]]s production, owned by [[Villum Foundation]])
* [[Rambøll]]
* [[COWI]]

;Energy technology
* [[Vestas]] ([[wind turbine]]s)
* [[Siemens Wind Power]] (wind turbines)
* [[Danfoss]] (climate and energy)
* [[Grundfos]] (the world's largest [[pump]] manufacturer)
* [[NKT A/S]] ([[Power cables]] and [[subsea umbilicals]])
* [[Ørsted (company)]] (Formerly known as DONG energy)

;Electronics
* [[Linak]]
* [[Bang and Olufsen]] ([[hi-fi]] equipment)
* [[Nilfisk]]
* [[Ortofon]]
* [[Danfoss]]

;Food and drink
* [[Carlsberg Group|Carlsberg]] ([[brewing company]])
* [[Royal Unibrew]]
* [[Chr. Hansen]] (food ingredients and enzymes)
* [[Danisco]] (enzymes, biotechnology and pharmaceutical supplier)

;Insurance
* [[Alm. Brand]]
* [[Tryg]]

;[[Medical equipment]]
* [[Widex]]
* [[William Demant]]

;[[Pharmaceutical]] and [[biotechnology]]
Many of the largest food producers are also engaged in biotechnology and research. Notable companies dedicated to the pharmaceutical and biotechnology sector, includes:
* [[H. Lundbeck]]
* [[Novo Nordisk]]
* [[LEO Pharma]]
* [[Coloplast]]
* [[Dansac]] (owner Hollister Inc)
* [[Novozymes]]
* [[Pharma Nord]]
* [[Pharmacosmos]]
* [[ALK-Abelló]]
* [[Genmab]]
* [[RosePharma]]
* [[Santaris Pharma A/S]]
* [[Veloxis Pharmaceuticals]]
* [[Zealand Pharma]]

;Retail
* [[Salling Group]] (retail business)
* [[Coop Danmark]], (part of the multi-sector [[Coop amba]], formerly known as FDB until 2013)
* [[Dagrofa]]

;Transport
* [[A. P. Moller-Maersk Group]] (Maersk – conglomerate: shipping)
* [[Blue Water Shipping]]
* [[DFDS]]
* [[DSV (company)|DSV]]
* [[Scan Global Logistics]]
* [[United Shipping & Trading Company|USTC]] (conglomerate: shipping, trading)

;Miscellaneous
* [[ISS A/S|ISS]] (facility services)
* [[The Lego Group]], as of 2014 the world's largest toy manufacturer by sales (in the first half of 2015, it made $2.1&nbsp;billion in sales)
* [[Terma A/S]], aerospace and defense

=== Cooperatives ===
{{main|Danish cooperative movement}}
Denmark has a long tradition for [[cooperative]] production and trade on a large scale. The most notable cooperative societies today includes the agricultural coop of [[Dansk Landbrugs Grovvareselskab]] (DLG), dairy producer Arla Foods and the retail cooperative [[Coop Danmark]]. Coop Danmark started out as ''"Fællesforeningen for Danmarks Brugsforeninger"'' (FDB) in 1896 and now has around 1.4&nbsp;million members in Denmark as of 2017.<ref name="Hoovers">{{cite web|url=http://www.hoovers.com/company-information/cs/company-profile.coop_danmark_a-s.8e8622076b0a12bc.html |title=Coop Danmark A/S |website= Hoovers|access-date=15 April 2017}}</ref> It is part of the larger multi-sector cooperative [[Coop amba]] which has 1.7&nbsp;million members in that same year.

The cooperative structure also extends to both the housing and banking sector. [[Arbejdernes Landsbank]], founded in 1919, is the largest bank cooperative and it is currently the 6th largest bank in the country as of 2018.<ref>[https://www.finanstilsynet.dk/da/Tal-og-Fakta/Statistik/Statistik-om-sektoren/Pengeinstitutternes-stoerrelsesgruppering Pengeinstitutternes størrelsesgruppering] {{in lang|da}}</ref> The [[Copenhagen Municipality|municipality of Copenhagen]] alone holds a total of 153 housing cooperatives and ''"Arbejdernes Andelsboligforening Århus"'' (AAB Århus) is the largest individual housing cooperative in Denmark, with 23,000 homes in [[Aarhus]].<ref>{{cite web|url=http://www.andelsboligforeninger.com/andelsboligforening-statistik.html|title=Statistik for registrede andelsboligforeninger på andelsboligforeninger.com [Statistics for registered housing cooperatives at andelsboligforeninger.com]|publisher=Andelsboligforeninger.com|language=da|access-date=19 May 2016|archive-url=https://web.archive.org/web/20160501094056/http://www.andelsboligforeninger.com/andelsboligforening-statistik.html|archive-date=1 May 2016}}</ref>

=== Statistics ===
In 2022, the sector with the highest number of companies registered in Denmark is Finance, Insurance, and Real Estate with 204,853 companies followed by Services and Retail Trade with 204,050 and 30,563 companies respectively.<ref>{{cite web | url=https://www.hithorizons.com/eu/analyses/country-statistics/denmark | title=Industry Breakdown of Companies in Denmark | website=HitHorizons}}</ref>

==See also==
{{Portal|Denmark}}
* [[List of Danish companies]]
* [[Tourism in Denmark]]

==References==
{{reflist}}

==Further reading==
* Lampe, Markus, and Paul Sharp. '' A Land of Milk and Butter: How Elites Created the Modern Danish Dairy Industry'' (U of Chicago Press, 2018) [https://eh.net/?s=danish+dairy online review]
* Boberg-Fazlic, Nina; Jensen, Peter Sandholt; Lampe, Markus; Sharp, Paul; Skovsgaard, Christian Volmar (2023). "'[https://link.springer.com/article/10.1007/s10887-023-09226-8 Getting to Denmark': the role of agricultural elites for development]". ''Journal of Economic Growth''. '''28''' (4): 525–569.
* Kærgård, Niels (2023). "[https://www.tandfonline.com/doi/full/10.1080/03468755.2023.2268084 The Danish Economy, 1973–2009: From National Welfare State to International Market Economy]". ''Scandinavian Journal of History''

== External links ==
{{commons}}
* [https://web.archive.org/web/20090221171443/http://www.denmark.net/denmark-guide/economy-denmark.html Economy of Denmark]
* [http://www.danmarksstatistik.dk/HomeUK.aspx Statistics Denmark]
* [http://www.nationalbanken.dk/en Danmarks Nationalbank – central bank of Denmark]
* [http://www.oecd.org/denmark/ OECD's Denmark country Web site] and [http://www.oecd.org/eco/surveys/denmark/ OECD Economic Survey of Denmark]
* [https://2009-2017.state.gov/r/pa/ei/bgn/3167.htm Bureau of Public Affairs, U.S. Department of State, country overview for Denmark]
* [http://wits.worldbank.org/CountryProfile/Country/DNK/Year/2012/Summary World Bank Summary Trade Statistics Denmark]
* [http://www.da.dk/default.asp Dansk Arbejdsgiverforening Confederation of Danish Employers]
* [https://web.archive.org/web/20080317021622/http://www.lo.dk/Englishversion/Introduction.aspx Landsorganisationen i Danmark The Danish Confederation of Trade Unions]
* [https://web.archive.org/web/20071228065033/http://www.akf.dk/english/ Anvendt Kommunal Forskning Danish Institute of Governmental Research]
* [https://web.archive.org/web/20071112032757/http://www.sfi.dk/sw7013.asp The Danish National Centre for Social Research]
* [http://www.dors.dk/sw403.asp De økonomiske Råds sekretariat Danish Economic Councils] {{Webarchive|url=https://web.archive.org/web/20150317034907/http://www.dors.dk/sw403.asp |date=17 March 2015}}
* [https://web.archive.org/web/20071007024224/http://www.aeraadet.dk/regado.jsp?type=page&id=56 Economic Council of the Labour Movement]
* [https://web.archive.org/web/20080220070253/http://www.cepos.dk/cms/index.php?id=114 CEPOS Think Tank for a liberal economy and limited Government etc.]
* [https://web.archive.org/web/20080612121235/http://www.casa-analyse.dk/352/2839 Center for Alternativ Samfundsanalyse Centre for Alternative Social Analysis]
* [https://web.archive.org/web/20071220233349/http://eh.net/encyclopedia/article/henriksen.denmark Economic History Services Encyclopedia: Denmark]
* [https://archive.today/20130213015621/http://www.top1000.dk/virksomheder Danish Top 1000 Companies]
* [https://www.cia.gov/the-world-factbook/countries/denmark/ The World Factbook: Economy:Denmark]

{{Denmark topics}}
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{{DEFAULTSORT:Economy of Denmark}}
[[Category:Economy of Denmark| ]]
[[Category:European Union member economies|Denmark]]
[[Category:OECD member economies|Denmark]]
[[Category:Economies of Europe by country|Denmark]]