Denmark has a diverse, mixed economy but it relies heavily on human resources due to the lesser natural resources available, except oil and gas wells in North Sea. Denmark has one of the strongest economies in Europe due to its balanced state budget, stable currency, low interest rates and low inflation.
Denmark’s most important trading partner is considered to be Germany other than Sweden, Britain and Norway. Moreover Denmark is also considered powerful to trade freely in goods and services with other countries. Denmark is also a member of collaborative organizations such as the EU, OECD and WTO. Economy of Denmark is small, open and highly-geared to trade.
Foreign Direct Investments:
Denmark is basically into trade with the Nordic countries, Western and Central Europe, as well as the different economies of Eastern Europe. Moreover Denmark’s membership in the European Union provides unlimited access to a total EU market. Business firm in Denmark also earns profit from its macroeconomic climate and competitive conditions in relation to taxation and labour costs. Investors in Denmark are offered a number of important tax advantages, companies in Denmark also benefit from its positive rules on depreciation. Denmark offers competitive labour costs because of the employer's low cost burden in terms of social security, labour taxes, etc. Competitive labour costs and high productivity levels combine to make Denmark's work force one of the most efficient in Europe.
Denmark is home to various types of agricultural products and it produces enough foodstuffs for around 15 million people almost triple compared to the population of Denmark. Denmark is also leading producer of grass, clover and horticultural seeds.
Manufacturing sector in Denmark produces large number of goods, both for export purpose and for domestic consumption. Bacon factories, dairies, corn mills and breweries are the most important sectors of food & beverage industries. The mechanical engineering industry produces motors, agricultural machines, pumps, thermostats, refrigerators, telecommunications equipment and shipping. Moreover, Danish products like furniture, clothing, toys and newspapers are highly sold.
Denmark leads in the production of wind energy. Denmark is also ranked third in the oil production after Norway and Britain. Alongwith gas production, oil also plays a major role in Denmark having balanced payments surplus. Denmark’s energy production is mainly based on imported coal, oil and natural gas. Oil and natural gas are produced in large quantities compared to the domestic consumption requirements and the surplus oil is sold in the spot market.
Transportation is considered to be one of the most important sectors of Denmark. Transportation sector varies depending on the size of the individual undertakings. The field of public transport, shipping and aviation in Denmark comprises of very small number of public or private undertakings. While there is considerable number of smaller firms for both transportation of goods and personal transport.
Education and Communications:
Education industry witnessed rise in the percentage of salaried employees and skilled workers following the increased employment opportunities in the public sector in Denmark. The real production value within postal and telecommunication services rose due to technological advances in the fields of computing and data transmission in Denmark.
Danish labour market is mainly founded on agreements between employer and employee organizations. Despite help from a conciliation board, these two groups haven’t been able to come to agreement. Around 80% of work-force in Denmark has membership of unions.