Denmark
Traditionally a merchant nation with Viking roots; excelling in pharmaceutics, renewable energy and shipping.
Total area: 43,094 sq km
Population: 5.9 million
Government type: Constitutional monarchy with a parliamentary system
Administrative division: 5 regions (called “regioner”)
Capital + other major cities: Copenhagen (1.3 million) + Aarhus (290,000), Odense (182,000), Aalborg (120,000)
Currency: Danish krone (DKK)
Language: Danish (official)
Ethnicity: Danish 84.2%, Turkish 1.1%, other 14.7% (Polish, Romanian, Syrian, etc.)
Religion: Lutheran (71.4%), Muslim (4.3%), none or unspecified (24.3%)
King: Frederik X.
Prime Minister: (Ms.) Mette Frederiksen (since 27 June 2019)
Date of EU accession: 1973
KEY FEATURES
- The world’s fifth largest maritime shipping nation
- One of the world’s largest exporters of fish products
- Robust welfare state
- Ranked as the least corrupt country in the world, according to the Corruption Perceptions Index
- Home to one of the world’s oldest constitutions
- A leader in the flexicurity approach to the labor market
- The Danish krone is firmly pegged to the euro
- Ranks as the most competitive country in the EU
MACROECONOMIC OVERVIEW
Denmark consistently ranks among the top ten countries in the world in terms of GDP per capita, combining a high standard of living, a robust welfare system, and strong economic performance. Despite recovering well from the COVID-19 pandemic, the country faced significant challenges due to supply chain disruptions and surging inflation, which peaked at 8.5% in 2022—the highest level since the early 1980s. GDP growth reached 3.7% in 2024, driven largely by the pharmaceutical sector, while inflation moderated to around 1.9% by mid-2025.
A growing share of Denmark’s economic growth has become increasingly tied to the performance of Novo Nordisk, with economists coining the term “Novonomics” to describe this phenomenon. Economists are concerned that the Danish economy is becoming too dependent on the performance of a single company, echoing the so-called “Nokia effect” that occurred in Finland in the early 2000s. In 2023, Denmark’s 2.5% GDP growth was almost entirely attributable to Novo Nordisk—without it, the economy would have stagnated or even contracted by 0.1%. The potential over-reliance on Novo Nordisk is therefore a risk, highlighting the need for a more diversified economic growth strategy.
Looking ahead, growth projections remain cautiously optimistic, though not without concern. The pharmaceutical sector is expected to contribute 1.1 percentage points to GDP growth in 2025 and 0.6 points in 2026. However, recent developments have exposed vulnerabilities. In August 2025, Novo Nordisk’s market value dropped by nearly USD 100 billion amid rising global competition.
Despite these concerns, the IMF has assessed the risk of broader economic spillover as limited, noting that a large share of Novo Nordisk’s production occurs outside Denmark, and domestic linkages are relatively contained. The Danish central bank projects GDP growth of 3.6% in 2025 and 2.3% in 2026, emphasizing that the underlying structure of Denmark’s economy remains balanced, even in the face of external pressures.
Selected economic indicators, Denmark, 2017 - 2023
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||
| GDP |
|
|
|
|
|
|
|
|
| Real GDP growth |
%
|
2.8 | 2.0 | 1.5 | -2.4 | 6.8 | 2.7 | 1.9 |
| GDP at current prices |
€ bn
|
294.8 | 302.3 | 309.5 | 311.4 | 342.9 | 380.6 | 373.7 |
| Foreign trade |
|
|
|
|
|
|
|
|
| Exports |
€ bn
|
162.3 | 170.9 | 181.5 | 171.6 | 201.3 | 266.5 | 257.9 |
| Imports |
€ bn
|
141.2 | 152.4 | 159.6 | 151.4 | 178.3 | 224.2 | 222.1 |
| Balance |
€ bn
|
21.1 | 18.5 | 21.8 | 20.1 | 22.9 | 42.2 | 35.7 |
| Prices |
|
|
|
|
|
|
|
|
| CPI – average inflation rate |
%
|
1.1 | 0.7 | 0.7 | 0.3 | 1.9 | 8.5 | 3.4 |
| PPI – industry – average |
%
|
3.3 | 6.4 | -0.6 | -4.8 | 25.2 | 47.0 | -0.5 |
| Employment |
|
|
|
|
|
|
|
|
| Registered unemployment |
%
|
5.8 | 5.1 | 5.0 | 5.6 | 5.1 | 4.5 | 5.1 |
| Average monthly gross wage |
€
|
4,843 | 4,909 | 4,988 | 5,083 | 5,210 | 5,394 | |
| Exchange rates* |
|
|
|
|
|
|
|
|
| USD/DKK average (DKK per USD) |
|
6.6 | 6.3 | 6.6 | 6.5 | 6.2 | 7.0 | 6.8 |
| Currency board fixed rate: EUR/DKK |
|
7.4
|
7.4 | 7.4 | 7.4 | 7.4 | 7.4 | 7.4 |
Source: IMF, OECD, World Bank, Eurostat, ECB, 2017-2023
* For the current exchange rate, please see www.xe.com
KEY SECTORS
Denmark boasts a highly competitive and resilient economy with significant strengths in the pharmaceutical, shipping, and renewable energy sectors.
Pharmaceutical Industry
The pharmaceutical industry is a cornerstone of Denmark's economy, led by Novo Nordisk, a global leader in obesity and diabetes drugs. The company alone employs more than 77,000 people worldwide, including over 30,000 in Denmark. The pharmaceutical giant contributes approximately 10% of national GDP through revenue and accounts for 6.7% of GDP via pharmaceutical exports alone. Other important industry players, such as Lundbeck and Coloplast, have significantly lower sales. Pharmaceutical products account for 16% of all exports.
Shipping and Maritime Industry
As a traditional merchant and shipping nation, Denmark's shipping industry accounts for approximately 27% of total exports. The country is home to the world’s largest container shipping operator Maersk, a global leader in shipping and logistics, employing around 25,000 people.
Renewable Energy and Cleantech
Denmark is a global leader in renewable energy, particularly in wind power. Nearly half of the country's electricity comes from wind, and companies like Vestas and Ørsted are global leaders in wind energy technology. The Danish wind industry employs more than 33,000 people and reflects Denmark's commitment to sustainability and green innovation.
Food Industry
Despite its small size, Denmark is known for its food exports, particularly in dairy products, pork, and organic foods with Arla Foods and Danish Crown playing major roles in the sector. Many food processing companies are cooperatively owned by farmers. The agricultural sector contributes around 22% to total Danish exports and is recognized for its high productivity and emphasis on intensive research and innovation. Denmark is a frontrunner in organic food production and consumption as around 12% of Danish farmland is cultivated organically.
EXPORTS & IMPORTS
Denmark is one of the most open economies in the Nordic region, with exports of goods and services accounting for 68% of GDP—reflecting its deep integration into global markets. Its main trading partners are overwhelmingly fellow EU member states and neighboring Nordic countries.
2023 export and import data:
Main import partners:
Germany – 18.8%
Sweden – 11.5%
Norway – 10%
Netherlands – 8.9%
China – 6.1%
Main export partners:
Special Categories – 22.2%
Germany – 13.1%
Sweden – 7.9%
Netherlands – 5.5%
Norway – 5%
USA – 4.7%
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