Denmark's industrialized market economy depends on imported raw materials and foreign trade. Within the European Union, Denmark advocates a liberal trade policy. Its standard of living is among the highest in the world, and the Danes devote 0.8% of GNI to foreign aid. Gross National Income (GNI) was used to as gross national product (GNP), even though it was a measure of income rather than output (or production). ...

Denmark is self-sufficient in energy - producing oil, natural gas, wind- and bio-energy. Its principal exports are machinery, instruments and food products. The U.S. is Denmark's largest non-European trading partner, accounting for around 5% of total Danish merchandise trade. Aircraft, computers, machinery, and instruments are among the major U.S. exports to Denmark. There are some 250 U.S.-owned companies in Denmark. Among major Danish exports to the U.S. are industrial machinery, chemical products, furniture, pharmaceuticals, and canned ham and pork.

From 1982, a center-right government corrected accumulated economic imbalances, mainly inflation and balance-of-payments deficits, but lost power in 1993 to a Social Democratic coalition government led by Poul Nyrup Rasmussen, which remained in office following the March 1998 election. During the governments of Poul Nyrup Rasmussen, there was a drastic fall in official unemployment, which peaked at 12.4% (1993)- and at almost 14% in the winter 1993/94- was 5.2% in 2001 and is (July 2006) 4.4%. This is the lowest level in 32 years, making up 122,300 persons. Average annual growth rates are now 2-3%. In November 2001, a center-right government led by Anders Fogh Rasmussen won the election on maintaining the current tax level, improving efficiency in the public administration and decreasing the number of immigrants and asylumseekers. Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ... Poul Nyrup Rasmussen Poul Nyrup Rasmussen (born June 15, 1943) was the Prime Minister of Denmark from January 25, 1993 to November 27, 2001. ... Anders Fogh Rasmussen , also: (born January 26, 1953) is the current Prime Minister of Denmark. ... A tax (also known as a duty) is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e. ...

The Danish model

For the past two years (2004 and 2005) the Danish economy has been surprisingly strong - surplus on the national budget is expected to be 76.25 billion DKK for 2006. The government is using most of this surplus to reduce the national debt. At the end of March 2006 a report from the Danish (Central) National Bank said that foreign assets owned by companies or individuals from Denmark were now worth more than the Danish foreign debt, effectively nullifying the foreign debt.

Welfare state

Danes are proud of their highly developed welfare safety net, which ensures that all Danes receive free health care and need not fear real poverty. Over the past 20 years, however, the number of Danes living on transfer payments has grown to about 1 million working-age persons (roughly 20% of the population), and the system is beginning to show strains. Health care and care for the elderly particularly have suffered, and the need for welfare reform is increasingly discussed because of the coming sharp decline in the ratio of workers to retirees. More than one-quarter of the labor force is employed in the public sector. Thus 61% of the adult population in Denmark is either dependent on transfer payments, i.e. entitlement benefits, or is employed by government at central, regional or local level (2005). However, only 4.4% (122,100) of Danes are officially unemployed.

The large public sector is financed by high taxes. A Value added tax of 25% is levied on the sale of most goods and services (including groceries). The income tax in Denmark ranges from 9%-44% for ultra-low to low-income families to 44%-62% progressively for middle class families. 850,000 Danes (31% of everyone employed and 44% of all full-time employees) pay a marginal income tax of 62%. The number of Danes paying a marginal income tax of 62% in 2006 is expected to be 925,000. ° It has been suggested that MOMS and VAT registered be merged into this article or section. ...

Greenland and the Faroe Islands

Main articles: Economy of the Faroe Islands and Economy of Greenland

Greenland suffered negative economic growth in the early 1990s, but since 1993 the economy has improved. A tight fiscal policy by the Greenland Home Rule Government since the late 1980s helped create a low inflation rate and surpluses in the public budget, but at the cost of rising foreign debt in the Home Rule Government's commercial entities. Since 1990, Greenland has registered a foreign trade deficit. Economy - overview: After the severe economic troubles of the early 1990s, brought on by a drop in the vital fish catch, the Faroe Islands have come back in the last few years, with unemployment down to 5% in mid-1998. ... Economy - overview: Greenland suffered negative economic growth in the early 1990s, but since 1993 the economy has improved. ...

Following the closure of Greenland's last lead and zinc mine in 1989, Greenland's economy is solely dependent on the fishing industry and financial transfers from the Danish central government. Despite resumption of several interesting hydrocarbon and mineral exploration activities, it will take several years before production will begin. Greenland's shrimp fishery is by far the largest source of income, since cod catches have dropped to historically low levels. Tourism is the only sector offering any near-term potential, and even this is limited due to the short season and high costs. The public sector plays a dominant role in Greenland's economy. Grants from mainland Denmark and EU fisheries payments make up about one-half of the home-rule government's revenues. Minerals are natural compounds formed through geological processes. ...

The Faroe Islands also depend almost entirely on fisheries and related exports. Without Danish Government bailouts in 1992 and 1993, the Faroese economy would have gone bankrupt. Since 1995, the Faroese economy has seen a noticeable upturn, but remains extremely vulnerable. Recent off-shore oil finds close to the Faroese area give hope for Faroese deposits, too, which may form the basis for an economic rebound over the longer term.

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 concentrated on reducing the unemployment rate and turning the budget deficit into a surplus, as well as following the previous government's policies of maintaining low inflation and a current account surplus. The coalition also committed itself to maintain a stable currency. The coalition lowered marginal income tax rates while maintaining overall tax revenues; boosted industrial competitiveness through labor market and tax reforms; increased research and development funds; and improved welfare services for the neediest while increasing public sector efficiency by cutting "red tape". Denmark chose not to join the 11 other European Union members who launched the euro on 1 January 1999. Especially from 2006, economists and political pundits have expressed concern that the lack of skilled labor will result in higher pay increases and an overheating of the economy, which would repeat the boom-and-bust cycle in 1986, when government introduced a tax reform and restricted the private loan market because of a record balance-of-payments deficit. As a consequence, the trade balance showed a surplus in 1987, and the balance-of-payments in 1990 (first surplus since 1963). They have remained in surplus since, except for the balance of payments in 1998. ... International trade is defined as trade between two or more partners from different countries (an exporter and an importer). ... ISO 4217 Code EUR User(s) European Union; Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Andorra, Monaco, San Marino, Vatican City, Montenegro, Kosovo, French Guiana, Réunion, Saint-Pierre et Miquelon, Guadeloupe, Martinique, Mayotte. ... January 1 is the first day of the calendar year in both the Julian and Gregorian calendars. ... 1999 (MCMXCIX) was a common year starting on Friday, and was designated the International Year of Older Persons by the United Nations. ...

National accounts

GDP:

Table showing selected PPP GDPs and growth - 2002 to 2006 est.:

purchasing power parity - $178.477 billion (2004 est.)

GDP - real growth rate: 2.4% (2003 est.)

GDP - per capita: purchasing power parity - $30,600 (2004 est.)

GDP - composition by sector:
agriculture: 2%
industry: 22.1%
services: 75.9% (2003 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 2%
highest 10%: 24% (2000 est.)

Inflation rate (consumer prices): 2.1% (2003 est.)

Labor force: 2.863 million (2003 est.)

Labor force - by occupation: services 79%, industry 17%, agriculture 4% (2002 est.)

Unemployment rate: 3.9% (2006 est.)

Budget:
revenues: $118.5 billion
expenditures: $116 billion, including capital expenditures of $500 million (2003 est.)

Industries: food processing, machinery and equipment, textiles and clothing, chemical and pharmaceutical production, electronics, construction, furniture, and other wood products, shipbuilding, windmills To meet Wikipedias quality standards, this article or section may require cleanup. ... Men and women wearing suits, an example of one of the many modern forms of clothing (from the 1937 Chicago Woolen Mills catalog) Clothing is defined, in its broadest sense, as coverings for the torso and limbs as well as coverings for the hands (gloves), feet (socks, shoes, sandals, boots... A chemical substance is any material substance used in or obtained by a process in chemistry: A chemical compound is a substance consisting of two or more chemical elements that are chemically combined in fixed proportions. ... Pharmacology (in Greek: pharmacon is drug, and logos is science) is the study of how chemical substances interfere with living systems. ... The field of electronics comprises the study and use of systems that operate by controlling the flow of electrons (or other charge carriers) in devices such as thermionic valves and semiconductors. ... A Shaker chair. ... A tree trunk as found at the Veluwe, The Netherlands Wood is derived from woody plants, notably trees but also shrubs. ... Men from Francisco de Orellanas expedition building a small brigantine, the San Pedro, to be used in the search for food Shipbuilding is the construction of ships. ... Pitstone Windmill, believed to be the oldest windmill in the British Isles A windmill is an engine powered by the energy of wind. ...

Industrial production growth rate: 0.3% (2003 est.)

Electricity - production: 35,470 GWh (2001)

Electricity - production by source:

• fossil fuel: 82.7%
• hydro: 0.1%
• other: 17.3% (2001)
• nuclear: 0%

Electricity - consumption: 32,410 GWh (2001)

Electricity - exports: 8,775 GWh (2001)

Electricity - imports: 8,199 GWh (2001)

Agriculture - products: grain, potatoes, rapeseed, sugar beets; beef, dairy products; fish Look up Cereal in Wiktionary, the free dictionary. ... Binomial name Solanum tuberosum L. The potato (Solanum tuberosum) is a perennial plant of the Solanaceae, or nightshade, family, commonly grown for its starchy tuber. ... Binomial name Brassica napus L. Rapeseed (Brassica napus), also known as Rape, Oilseed Rape, Rapa, Rapaseed and (one particular cultivar) Canola, is a bright yellow flowering member (related to mustard) of the family Brassicaceae. ... Two sugar beets - the one on the left has been cultivated to be smoother than the traditional beet, so that it traps less soil. ... A cut of beef. ... Dairy products are generally defined as foodstuffs produced from milk. ... The Guppy, also known as guppie (Poecilia reticulata) is one of the most popular freshwater aquarium fish species in the world. ...

Exports: $84.95 billion (f.o.b., 2005 est.)

Exports - commodities: machinery and instruments, meat and meat products, fuels, dairy products, ships, fish, chemicals, windmills Various meats Cold Meat Salad Meat, in its broadest modern definition, is all animal tissue intended to be used as food. ... For information on the band, see Fuel (band). ... Dairy products are generally defined as foodstuffs produced from milk. ... Italian ship-rigged vessel Amerigo Vespucci in New York Harbor, 1976 A ship is a large, sea-going watercraft, usually with multiple decks. ... The Guppy, also known as guppie (Poecilia reticulata) is one of the most popular freshwater aquarium fish species in the world. ... A chemical substance is any material substance used in or obtained by a process in chemistry: A chemical compound is a substance consisting of two or more chemical elements that are chemically combined in fixed proportions. ... Pitstone Windmill, believed to be the oldest windmill in the British Isles A windmill is an engine powered by the energy of wind. ...

Exports - partners: Germany 18.7%, Sweden 12.6%, UK 8.5%, United States 6.2%, Norway 5.7%, France 5.1%, Netherlands 4.7% (2003)

Imports: $74.69 billion f.o.b. (2005 est.)

Imports - commodities: machinery and equipment, petroleum, chemicals, grain and foodstuffs, textiles, paper Pumpjack pumping an oil well near Sarnia, Ontario Petroleum (from Greek petra – rock and elaion – oil or Latin oleum – oil ) or crude oil is a black, dark brown or greenish liquid found in porous rock formations in the earth. ... A chemical substance is any material substance used in or obtained by a process in chemistry: A chemical compound is a substance consisting of two or more chemical elements that are chemically combined in fixed proportions. ... Look up Cereal in Wiktionary, the free dictionary. ... A salad of vegetables and cheese Fried potato cakes and chicken patties Food is any substance, usually comprised primarily of carbohydrates, fats, vitamins, water and/or proteins, that can be eaten or drunk by animals (including humans) for nutrition and/or pleasure. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Piece of A4 paper Paper is a thin, flat material produced by the amalgamation of plant fibres, which are subsequently held together without extra binder, largely by hydrogen bonds and to a small degree by fiber entanglement. ...

Imports - partners: Germany 23.1%, Sweden 13%, UK 7%, Netherlands 6.9%, France 4.9%, Norway 4.5%, Italy 4.1% (2003)

Debt - external: $-7,2 billion (2006), $14.7 billion (2005), $21.7 billion (2000)

Economic aid - donor: ODA, $1.63 billion (1999)

Currency: 1 Danish krone (DKK) = 100 øre

Exchange rates: Danish kroner per US dollar - 6.18 (2006), 6.5877 (2003), 7.8947 (2002), 8.3228 (2001), 8.0831 (2000), 6.9762 (1999)

Fiscal year: calendar year

Seaports: Aalborg, Aarhus .... View of Aalborg railroad station from J.F. Kennedys Square, 2004 Aalborg (help· info) is a municipality (Danish, kommune) in North Jutland County on the Jutland peninsula in northern Denmark. ... Aarhus ( ) also commonly known by its contemporary Danish spelling Århus, is the second largest city and the principal port of Denmark situated on the peninsula of Jutland on the northern shore of Germany. ...

See also

• Danish mortgage market
• List of Danish companies

98% of Danish mortgages are securitized to mortgage backed securities and sold by the mortage originators. ... This is a partial list of Danish companies, companies headquartered in Denmark: A.P. Moller-Maersk Group Arla Foods (Dutch-Danish-Swedish) Bang & Olufsen (B&O) BoConcept Carlsberg Coop Norden (joint Danish, Norwegian and Swedish owned) DALI Danisco Danish Crown Danske Bank Dansk Supermarked Group DSB Group Ecco Sko FDB...

External links

• OECD's Denmark country Web site and OECD Economic Survey of Denmark
• IMF Country Report

Europe

• Economy of Europe

v·d·e

European Union members and candidates

Austria • Belgium • Cyprus • Czech Republic • Denmark • Estonia • Finland • France • Germany • Greece • Hungary • Ireland • Italy • Latvia • Lithuania • Luxembourg • Malta • Netherlands • Poland • Portugal • Slovakia • Slovenia • Spain • Sweden • United Kingdom

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Countries acceding on January 1, 2007: Bulgaria • Romania
Candidate countries in accession negotiations: Croatia • Turkey
Candidate country: Republic of Macedonia *
Potential candidate countries: Albania • Bosnia and Herzegovina • Montenegro • Serbia

* referred to as "the former Yugoslav Republic of Macedonia" by the European Union The economy of Europe is comprised of more than 665 million people in 48 different states. ... The constitutional treaty as signed in Rome on 29 October 2004 by representatives from all EU Member States The European Union (EU) is an intergovernmental and supranational union of 25 democratic member states. ... The European Union (EU) was originally created by the six founding states in 1952, but has grown to its current size of 25 member states. ... Image File history File links European_flag. ... Motto: Czech: Pravda vítÄ›zí (English: Truth prevails) Anthem: Kde domov můj Capital Prague Largest city Prague Official language(s) Czech Government Republic  - President Václav Klaus  - Prime Minister Mirek Topolánek Formation 9th century   - Independence from Austria-Hungary October 28, 1918   - Dissolution of Czechoslovakia January 1, 1993... Motto: Dieu et mon droit (Royal motto; French for God and my right) 3 Anthem: God Save the Queen 4 Capital London Most populous conurbation Greater London Urban Area Official language(s) English (de facto)5 Government Constitutional monarchy  - Queen HM Queen Elizabeth II  - Prime Minister The Rt Hon Tony... January 1 is the first day of the calendar year in both the Julian and Gregorian calendars. ... 2007 (MMVII) will be a common year starting on Monday of the Gregorian calendar. ... Motto: (Transliteration: ) (English: ) Anthem: (Transliteration: ) (English: ) Capital Skopje Largest city Skopje Official language(s) Macedonian, Albanian1 Government Parliamentary republic  - President Branko Crvenkovski  - Prime Minister Nikola Gruevski Independence From Yugoslavia   - Declared September 8, 1991  Area    - Total 25,333 km² (148th)   (9,779 sq mi)   - Water (%) 1. ... Motto: None Anthem: Oj, svijetla majska zoro Capital Podgorica Largest city Podgorica Official language(s) Serbian of the Ijekavian dialect1 Government Republic  - President Filip Vujanović  - Prime Minister Milo Đukanović Independence From Serbia and Montenegro   - Declared June 3, 2006   - Recognised June 8, 2006  Area    - Total 14,026 km² (159th)   5,414... Motto: none Anthem: Bože pravde (English: God of Justice) Capital Belgrade Largest city Belgrade Official language(s) Serbian1 Government Republic  - President Boris Tadić  - Prime Minister Vojislav KoÅ¡tunica Formation and independence    - Formation of Serbia 814   - Formation of the Serbian Empire 1345   - Independence from the Ottoman Empire July 13, 1878...