Economy - overview This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, and high dependence on foreign trade. Denmark is a net exporter of food. The center-left coalition government will concentrate on reducing the persistently high unemployment rate and the budget deficit as well as following the previous government's policies of maintaining low inflation and a current account surplus. The coalition also vows to maintain a stable currency. The coalition has lowered marginal income taxes while maintaining overall tax revenues; boosted industrial competitiveness through labor market and tax reforms and increased research and development funds; and improved welfare services for the neediest while cutting paperwork and delays. Prime Minister RASMUSSEN's reforms focus on adapting Denmark to the criteria for European integration by 1999; Copenhagen has won from the European Union (EU) the right to opt out of the European Monetary Union (EMU). Denmark is, in fact, one of the few EU countries likely to fit into the EMU on time. Growth may fall off slightly to 2.8% in 1998, and inflation may rise to 2.5%.

GDP purchasing power parity - $122.5 billion (1997 est.)

GDP - real growth rate 3% (1997 est.)

GDP - per capita purchasing power parity - $23,200 (1997 est.)

GDP - composition by sector
agriculture: 4%
industry: 27%
services: 69% (1995)

Inflation rate - consumer price index 2.2% (1997 est.)

Labor force
total: 2,895,950
by occupation: private services 40%, government services 30%, manufacturing and mining 19%, construction 6%, agriculture, forestry, and fishing 5% (1995)

Unemployment rate 7.9% (1997 est.)

Budget
revenues: $62.1 billion
expenditures: $66.4 billion, including capital expenditures of $NA (1996 est.)

Industries food processing, machinery and equipment, textiles and clothing, chemical products, electronics, construction, furniture, and other wood products, shipbuilding

Industrial production growth rate 1.3% (1996)

Electricity - capacity 10.604 million kW (1995)

Electricity - production 34.244 billion kWh (1995)

Electricity - consumption per capita 6,432 kWh (1995)

Agriculture - products grain, potatoes, rape, sugar beets; meat, dairy products; fish

Exports
total value: $48.8 billion (f.o.b., 1996)
commodities: machinery and instruments 25%, meat and meat products, fuels, dairy products, ships, fish, chemicals
partners: Germany 22.5%, Sweden 9.7%, UK 7.9%, Norway 5.9%, France 5.4%, Netherlands 4.4%, US 4.0% (1995)

Imports
total value: $43.2 billion (c.i.f., 1996)
commodities: machinery and equipment, petroleum 25%, chemicals, grain and foodstuffs, textiles, paper
partners: Germany 21.7%, Sweden 11.7%, Netherlands 7.0%, UK 6.6%, France 5.2%, Norway 4.9%, US 4.7%, Japan 3.5%, FSU 1.7% (1995)

Debt - external $44 billion (1996 est.)

Economic aid
donor: ODA, $1.34 billion (1993)

Currency 1 Danish krone (DKr) = 100 oere

Exchange rates Danish kroner (DKr) per US$1 - 6.916 (January 1998), 6.604 (1997), 5.799 (1996), 5.602 (1995), 6.361 (1994), 6.484 (1993)

Fiscal year calendar year

NOTE: The information regarding Denmark on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Denmark Economy 1998 information contained here. All suggestions for corrections of any errors about Denmark Economy 1998 should be addressed to the CIA.