In 2017, the official Danish tax level amounted to 46.1% of GDP. Foreign trade increased heavily relative to GDP. The Economy Of Denmark - WorldAtlas The World Factbook, CIA, retrieved 7 December 2018", "Faroe Islands Economy overview. Looking good despite it all (photo: Pixabay/ASSY) Denmark's economy is forecast to be the second best performer as the EU emerges from the Coronavirus Crisis, according to the European Commission. Denmark is the largest producer of oil and natural gas in the EU. . "Personaleomstning 2017: Flere skifter job isr i serviceerhverv". Dated January 2008, retrieved 1 December 2018. per capita since 2007 is comparable to the declines in debt-crisis countries like Portugal or Spain, even though Denmark has never lost the . Denmark's active labour market policies particularly focus on tackling youth unemployment. Denmark - Forbes At the same time, average household gross debt was almost 300% of disposable income, which is also at the highest level in OECD. Moreover, Denmark is among the world leaders in wireless communications, internet and new media. Maintenance of the fixed exchange rate is the responsibility of Danmarks Nationalbank, the Danish central bank. The average for all OECD countries together was 72.1%. [83], 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 bases (ensuring a low level of tax avoidance), and a strong subsidization of goods that are complementary to working (ensuring a high level of labour force participation). Frre end 10.000 heltids-landbrug tilbage i Danmark. Government consumption took up precisely 25% of GDP (e.g. Small enterprises are dominant. [66] 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. Denmark second best economy in Coronavirus Crisis - The Post Denmark is a firm advocate of liberal trade and investment policies and actively encourages foreign investment. transport equipment): 24.2%, Miscellaneous Manufactured Articles: 17.8%, Live animals, food, beverages, and tobacco: 13.8%, Services (2021) - Main imports (% of total services imports), Telecommunications, computer and information services: 11%, Goods - Main Imports (% of total goods imports), Machinery (excl. ", "Youth unemployment policies: Review of the Danish Youth Unemployment Programme and the British New Deal for Young People", "LFS by sex and age indicators: Labour force participation rate. Denmark | One of the happiest countries in the world 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. Retrieved on 28 November 2018", Det danske energiforbrug p rekordlavt niveau, "Dansk Industri til angreb p regeringens grnne afgifter", "EL: Grnne afgifter spnder ben for grn omstilling", Afgifter provenuet af afgifter og moms 20092016, Forbedring af den nationale elprisstatistik for erhverv, "Electricity prices for household consumers (taxes included), first half 2018 (EUR per kWh). Overall activity has all more or less recovered to pre-pandemic levels, and the Danish economy is supported by a strong expansion in private demand. 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. [37] They find that there has been a substantial and permanent, though fluctuating, economic growth all the time since 1820. Denmark is a long time leader in wind power. . [101], 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. Export of dairy products accounts for more than 20 percent of the total Danish agricultural export. Fixed investment, which expanded by over 11%, spearheaded the . [87] A person that is not a member of an A-kasse cannot receive unemployment benefits. [6] The sector is very capital-intensive, so the share of employment is much lower: About 2,000 persons worked in the oil and gas extraction sector in 2016, and another 1,000 persons in extraction of gravel and stone, or in total about 0.1% of total employment in Denmark.[14]. Another important factor is gender equality, with Denmark ranked second in the EU in . At the turn of the century industry (including artisanry) fed almost 30% of the population. (e.g. Enjoy a year of unlimited . 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 situation. Denmarks fiscal position is sound, and the country entered the global COVID-19 pandemic from a position of strength, highlighted by the Danish economy having a low fiscal deficit of 2.3 percent of GDP in 2021. [46] 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. OECD Journal on Budgeting, Volume 2015/2,OECD 2016", "Danish Economic Council: Danish Economy, Spring 2017. While unemployment rates have soared across Europe, the official Polish figures have hardly budged, and are the lowest in the EU according to the latest Eurostat figures. Country Rankings: World & Global Economy Rankings on Economic Freedom [56], According to Eurostat, the unemployment rate was 5.7% in 2017. Slovakia, Slovenia, Czechia, Finland, Belgium and the Netherlands had a lower Gini coefficient for disposable income than Denmark. [82], In 2016, the average marginal tax rate on labour income for all Danish tax-payers was 38.9%. Denmark's economy is based on the flexicurity model, which combines a flexible labor market with a policy for the unemployed. Regions administer mainly health care services, whereas municipalities administer primary education and social services. Correcting for purchasing power, income was Int$52,390 or 16th-highest among the 187 countries. Fur animal production on an industrial scale started in the 1930s in Denmark. [43] The pension wealth consequently is a very important both for the life-cycle of a typical individual Danish household and for the national economy. Denmark has one of Europe's most efficient distribution systems. Denmark's standard of living is among the highest in the world with a GDP per capita of $67,196 in 2021. The World Factbook, CIA, retrieved 7 December 2018", "The Faroe Islands and the European Union", "What is Greenland's relationship with the EU? On 6 February 2015 the certificates of deposit rate, one of the four official Danish central bank rates, was lowered to 0.75%. [97] Approximately 98 percent of the skins sold at Kopenhagen Fur Auction were exported. 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.