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
- Among the world’s top exporters of seafood
- 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 world’s top countries 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 1.3%.
A growing share of Denmark’s economic growth has become increasingly tied to the performance of Novo Nordisk, giving rise to the term “Novonomics”. 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. Without the pharmaceutical sector’s contribution, growth would have been negative in both 2022 and 2023 and more than halved in 2024. The potential over-reliance on Novo Nordisk is therefore a risk and recent developments have further highlighted vulnerabilities. In August 2025, Novo Nordisk’s market value dropped by nearly USD 100 billion amid rising global competition. This prompted a severe downgrade of Denmark’s 2025 GDP growth forecast, from 3.2% to just 1.8%, reflecting the economy’s sensitivity to the performance of its largest pharmaceutical company.
Selected economic indicators, Denmark, 2018 - 2024
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | ||
| GDP |
|
|
|
|
|
|
|
|
| Real GDP growth |
%
|
2.0 | 1.5 | -2.4 | 6.8 | 0.4 | 0.6 | 3.5 |
| GDP at current prices |
€ bn
|
302.3 | 309.5 | 311.4 | 342.9 | 380.6 | 373.7 | 392.4 |
| Foreign trade |
|
|
|
|
|
|
|
|
| Exports |
€ bn
|
170.9 | 181.5 | 171.6 | 201.3 | 266.5 | 257.9 | 278.6 |
| Imports |
€ bn
|
152.4 | 159.6 | 151.4 | 178.3 | 224.2 | 222.1 | 238.4 |
| Balance |
€ bn
|
18.5 | 21.8 | 20.1 | 22.9 | 42.2 | 35.7 | 40.2 |
| Prices |
|
|
|
|
|
|
|
|
| CPI – average inflation rate |
%
|
0.7 | 0.7 | 0.3 | 1.9 | 8.5 | 3.4 | 1.3 |
| PPI – industry – average |
%
|
6.4 | -0.6 | -4.8 | 25.2 | 47.0 | -0.5 | -2.1 |
| Employment |
|
|
|
|
|
|
|
|
| Registered unemployment |
%
|
5.1 | 5.0 | 5.6 | 5.1 | 4.5 | 5.1 | 6.2 |
| Average monthly gross wage |
€
|
4,909 | 4,988 | 5,083 | 5,210 | 5,394 | 5,558 | 5,875 |
| Exchange rates* |
|
|
|
|
|
|
|
|
| USD/DKK average (DKK per USD) |
|
6.3 | 6.6 | 6.5 | 6.2 | 7.0 | 6.8 | 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, 2018-2024
* For the current exchange rate, please see www.xe.com
KEY SECTORS
Denmark boasts a highly competitive and resilient economy, with notable strengths in the pharmaceutical, shipping, and renewable energy industries, as well as a highly efficient agricultural sector. The labor market is also exceptionally resilient. In terms of employment, the service sector accounts for 80.6% of the workforce, manufacturing for 17.3%, and agriculture for 2.1%.
Pharmaceutical Industry
TThe 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 78,000 people worldwide, including over 33,000 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 24% of all exports.
Shipping and Maritime Industry
As a traditional merchant and shipping nation, Denmark ranks among the world’s top ten maritime nations measured by operated tonnage. The shipping industry accounts for approximately 24% of total exports. Denmark is also home to Maersk, the world’s largest container shipping company and a global leader in shipping and logistics, employing over 100,000 people worldwide.
Renewable Energy and Cleantech
Denmark is a global leader in renewable energy, particularly in wind power. OVer half of the country's electricity (60%) 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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