Economy of Denmark: Difference between revisions
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{{update|date=May 2026}} | |||
{{Short description|None}} | {{Short description|None}} | ||
{{Use dmy dates|date=June 2020}} | {{Use dmy dates|date=June 2020}} | ||
{{Infobox economy | {{Infobox economy | ||
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| image = Copenhagen aerial view by night.jpg | | image = Copenhagen aerial view by night.jpg | ||
| image_size = 310px | | image_size = 310px | ||
| caption = [[Copenhagen]] | | caption = [[Copenhagen]] is the economic centre of Denmark | ||
| currency = [[Danish krone]] (DKK, kr) | | currency = [[Danish krone]] (DKK, kr) | ||
| year = calendar year | | year = calendar year | ||
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*[[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> | *[[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"/>}} | *[[Nordic model]] EU economy<ref name="CIAWFDA"/>}} | ||
| population = | | population = {{IncreaseNeutral}} 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| | | gdp = {{plainlist| | ||
*{{increase}} $ | *{{increase}} $501 billion (nominal, 2026)<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}} $ | *{{increase}} $544.05 billion ([[Purchasing power parity|PPP]], 2026)<ref name="IMFWEODK"/>}} | ||
| gdp rank = {{plainlist| | | gdp rank = {{plainlist| | ||
*[[List of countries by GDP (nominal)| | *[[List of countries by GDP (nominal)|34th (nominal, 2026)]] | ||
*[[List of countries by GDP (PPP)| | *[[List of countries by GDP (PPP)|50nd (PPP, 2026)]]}} | ||
| growth = {{plainlist| | | growth = {{plainlist| | ||
*2.5% (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> | *2.5% (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| | | per capita = {{plainlist| | ||
*{{increase}} $ | *{{increase}} $80,978 (nominal, 2025)<ref name="IMFWEODK"/> | ||
*{{increase}} $ | *{{increase}} $88,791 (PPP, 2025)<ref name="IMFWEODK"/>}} | ||
| per capita rank = {{plainlist| | | per capita rank = {{plainlist| | ||
*[[List of countries by GDP (nominal) per capita|9th (nominal, 2023)]] | *[[List of countries by GDP (nominal) per capita|9th (nominal, 2023)]] | ||
| Line 32: | Line 33: | ||
| 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]]) | | 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| | | 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/>}} | *(2017)<ref name=nabp10/>}} | ||
| inflation = {{plainlist| | | inflation = {{plainlist| | ||
*2.0% (2025)<ref name="IMFWEODK"/>}} | *2.0% (2025)<ref name="IMFWEODK"/>}} | ||
| poverty = {{plainlist| | | poverty = {{plainlist| | ||
| Line 53: | Line 52: | ||
*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>}} | *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| | | 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/>}} | *(2017)<ref name=ras300/>}} | ||
| unemployment = {{plainlist| | | 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> | *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>}} | *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 | | average gross salary = [[List of European countries by average wage|DKK 51,675 / €6,919]] monthly (2024)<ref>{{cite web |url=https://www.dst.dk/en/Statistik/laer-om-statistik/gennemsnitsdanskeren |title=The average Dane |website=dst.dk |publisher=[[Statistics Denmark]] |access-date=19 November 2024}}</ref> | ||
| average net salary = [[List of European countries by average wage|DKK | | average net salary = [[List of European countries by average wage|DKK 34,849 / €4,666]] monthly (2024) | ||
| industries = | | 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 billion (2021)<ref name="CIAWFDA"/> | | exports = $234.2 billion (2021)<ref name="CIAWFDA"/> | ||
| export-goods = | | export-goods = Wind turbines, pharmaceuticals, machinery and instruments, meat and meat products, dairy products, fish, furniture and design | ||
| export-partners = {{plainlist| | | export-partners = {{plainlist| | ||
*Germany 14.0% | *Germany 14.0% | ||
*Sweden 10.0% | *Sweden 10.0% | ||
*United States 10.0% | *United States 10.0% | ||
*China 6.0% | *China 6.0% | ||
*Norway 5.0% | *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>}} | *(2021)<ref name="CIAWFDA">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/denmark/ |archive-url=https://web.archive.org/web/20260118191623/https://www.cia.gov/the-world-factbook/countries/denmark/ |url-status=dead |archive-date=18 January 2026 |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=12 Mar 2024}}</ref>}} | ||
| imports = $208.1 billion (2021 est.)<ref name="CIAWFDA"/> | | imports = $208.1 billion (2021 est.)<ref name="CIAWFDA"/> | ||
| import-goods = | | import-goods = Machinery and equipment, raw materials and semimanufactures for industry, chemicals, grain and foodstuffs, consumer goods | ||
| import-partners = {{plainlist| | | import-partners = {{plainlist| | ||
*Germany 21% | *Germany 21% | ||
*Sweden 12% | *Sweden 12% | ||
*China 9% | *China 9% | ||
*Netherlands 8% | *Netherlands 8% | ||
*Poland 4.0% | *Poland 4.0% | ||
*(2021)<ref name="CIAWFDA"/>}} | *(2021)<ref name="CIAWFDA"/>}} | ||
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*AAA (Foreign) | *AAA (Foreign) | ||
*AAA (T&C Assessment) | *AAA (T&C Assessment) | ||
*Scope:<ref>{{cite news | title=Scope affirms Denmark | *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 | *AAA | ||
*Outlook: Stable}} | *Outlook: Stable}} | ||
| Line 111: | Line 111: | ||
| spelling = | | spelling = | ||
}} | }} | ||
[[Denmark]] has a modern [[World Bank high-income economy|high-income]] | [[Denmark]] has a modern [[World Bank high-income economy|high-income]], [[Developed country|highly developed]] and [[Social democracy|social democratic]] 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 $68,827 in 2023. Denmark follows the [[Nordic model]], characterized by an internationally high tax level, and a correspondingly high level of government-provided services (e.g. health care, child care and education services). There are also [[Transfer payment|income transfers]] to various groups, such as retirees, disabled people, the unemployed, and students. | ||
Correcting for purchasing power, per capita income was [[International dollar|Int$]]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> | 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. | 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 | 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. | ||
==History== | ==History== | ||
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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> | 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. | 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]]]] | [[File:Penning - dannebrogsmønt - Kmm 0034.jpg|thumb|left|Danish silver [[Norwegian penning|penning]] from the time of [[Valdemar I of Denmark]]]] | ||
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[[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> | [[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 | 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> | 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> | ||
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==Currency and monetary policy== | ==Currency and monetary policy== | ||
{{Main|Denmark and the euro}} | {{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]]]] | [[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> | 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> | ||
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===Overall organization=== | ===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/> | 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 === | === Budget and fiscal position === | ||
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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> | 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: | 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]]) | * 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]]) | * broad [[tax base]]s (ensuring a low level of [[tax avoidance]]) | ||
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=== Engineering and high-tech === | === 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. | Denmark houses a number of significant engineering and high-technology firms, within the sectors of industrial equipment, aerospace, robotics, pharmaceutical and electronics. Denmark has one of the fastest growing biotech industries of any country, with a 11.8x growth in venture capital investment between 2016 to 2021.<ref>{{cite web|url=https://dealroom.co/blog/danish-biotech-a-rapid-rise|title=Danish Biotech: a rapid rise |date=25 February 2022 }}</ref> The Pharmaceutical sector has exploded since the approval of semaglutide (active ingredient of ozempic) by the FDA for weight management in 2021. From 2021 to 2022, the value of Danish pharmaceutical exports jumped from 136.8 million DKK to 157.7 million DKK in one year.<ref>{{Cite web|url=https://www.statista.com/statistics/947987/export-value-of-medicinal-and-pharmaceutical-products-in-denmark/?srsltid=AfmBOopXoI0h0gU8W_dSFrdDHGcjqYT7mNnGN6993IDNUUafbWmTkSEz|title=Export value of medicinal and pharmaceutical products in Denmark from 2010 to 2023 | ||
}}</ref> The pharmaceutical industry is still the main driver of growth in the Danish Economy today, with 70% of growth in Q2 2025 coming from the sector.<ref>{{Cite web|url=https://corporate.nordea.com/article/101246/the-pharmaceutical-sector-drives-the-danish-economy|title=The pharmaceutical sector drives the Danish economy}}</ref> The increase in demand has also stimulated significant investment in research, manufacturing capacity, and high-skill employment. With Danske Bank reporting a more than doubling in venture capital investment into Danish biotech between 2020 to 2021.<ref>{{cite web|title=Danish Biotech: a rapid rise |date=25 February 2022 |url=https://dealroom.co/blog/danish-biotech-a-rapid-rise }}</ref> | |||
==== Electronics and industrial equipment ==== | ==== Electronics and industrial equipment ==== | ||
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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]]. | 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 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> | 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 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 | Denmark has established a prominent position in the integration of intermittent renewable energy sources, particularly wind power, into its national electricity grid. Building upon this expertise, the country has expanded its strategic focus toward the decarbonization of the transport sector. Central to this initiative is the large-scale integration of [[Electric vehicle|plug-in vehicles]] and the implementation of '''Vehicle-to-Grid''' ([[Vehicle-to-grid|V2G]]) technology, which utilizes intelligent battery systems to enhance grid stability and energy storage capacity.<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 === | === Energy === | ||
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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> | 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" | {| 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>''' | |+ ''' 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 | ! || Oil || Gasoline || Natural gas || Coal || Electricity | ||
|- | |- | ||
| [[Excise]]&[[Value added tax|VAT]] || 9.3 || 7.3 || 3.3 || 2.5 || 11.7 | | [[Excise]]&[[Value added tax|VAT]] || 9.3 || 7.3 || 3.3 || 2.5 || 11.7 | ||
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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 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 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 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"/> | 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|author1=Henriettej |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. | [[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. | ||
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{{Main|Economy of Greenland|Economy of 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. | |||
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/| archive-url = https://web.archive.org/web/20210109162939/https://www.cia.gov/the-world-factbook/countries/greenland| url-status = dead| archive-date = 9 January 2021| 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/| archive-url = https://web.archive.org/web/20210110004755/https://www.cia.gov/the-world-factbook/countries/faroe-islands| url-status = dead| archive-date = 10 January 2021| 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> | 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> | ||
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* [[Carlsberg Group|Carlsberg]] ([[brewing company]]) | * [[Carlsberg Group|Carlsberg]] ([[brewing company]]) | ||
* [[Royal Unibrew]] | * [[Royal Unibrew]] | ||
* [[ | * [[Novonesis]] (food ingredients and enzymes) | ||
* [[Danisco]] (enzymes, biotechnology and pharmaceutical supplier) | * [[Danisco]] (enzymes, biotechnology and pharmaceutical supplier) | ||
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=== Cooperatives === | === Cooperatives === | ||
{{main|Danish cooperative movement}} | {{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 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 million members in that same year. | 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 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 million members in that same year. | ||
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* [https://web.archive.org/web/20071220233349/http://eh.net/encyclopedia/article/henriksen.denmark Economic History Services Encyclopedia: Denmark] | * [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://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] | * [https://web.archive.org/web/20260118191623/https://www.cia.gov/the-world-factbook/countries/denmark/ The World Factbook: Economy:Denmark] | ||
{{Denmark topics}} | {{Denmark topics}} | ||