Economy in Denmark

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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: 1344%

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

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