Comfortable living standards, high degrees of government services and transfers, and a high dependence on foreign trade characterise Denmark’s modern mixed economy. Denmark is also a small open economy, with its exports and imports making up around 50% of the GDP.
The country’s nominal gross national income per capita is the seventh highest globally, registering at around $58,400 in 2020. In purchasing power, the country is the tenth highest in the world. Denmark has the 36th largest national economy in the world in terms of gross domestic product (GDP) and the 51st largest in the world in terms of purchasing power parity (PPP).
Denmark is a main gateway to European talent for companies expanding abroad and serves as a magnet for business ventures worldwide. A large proportion of Denmark’s population is active in the labour force, with 78.8% of the 15-64 age group being active.
The unemployment rate is also relatively low in comparison with other European countries. The labour market is also characterised by a high degree of union membership rates and collective agreement coverage – with active labour markets and ‘flexicurity’ taking being prominent in its efficiency.
Denmark’s strongest sectors include agriculture, services, energy, manufacturing, and digital infrastructure. Denmark is a nation of digital frontrunners, ranked by the European Commission as an innovation leader. The country also boasts one of the world’s highest digital penetration rates, with over 75% of the population accessing the internet seamlessly.
Denmark has solid international ties – it is a founding member of NATO, the Nordic Council, the OECD, OSCE, and the United Nations, as it is also part of the Schengen Area.
Geographically, Denmark is ideally placed in the European continent, with links to both mainland Europe and Scandinavia, and benefits from state-of-the-art logistics and communications networks with the fastest and smoothest access to Europe.