Economy of Denmark

The economy of Denmark , very dependant on the Foreign trade because of the small size of the interior market, prosperous and is made country one of richest in the world. Market economy, open (the Exportation S account for 32% of GDP and increase the Growth rate), Denmark concentrates its production on certain products (industrial pharmaceutical products, capital equipment, but also oil and natural gas).

Presentation

The Danish economy, traditionally agricultural, was directed at the 19th century towards industry and the services.

The agricultural sector however remained powerful thanks to a dynamic policy of export (the United Kingdom, other Scandinavian countries) of products processed (beers, dairy products and flesh-colored), implemented by well organized co-operative structures. Climate warming is even a favorable factor in certain sectors like cereals: whereas, in the rest of Europe, the year 2003 was dramatic for harvests, the country saw its production increasing.

Industry was directed very early towards a policy of niches. Great Danish groups dominate their speciality and acquired a world reputation (toys, thermal regulation, brewery, wind mills, high fidelity, etc.). Requiring approaches marketing doors, these activities could often thrive thanks to solid capital intensive structures of origin family investing on the long run.

The services in addition profited from the geographical location of the country with the port of Copenhagen ideally placed in the strait of the Grand Belt. The Danish maritime transport is powerful and ensures a world cover of its services.

The Danish miracle?

One speaks sometimes in France about a “Danish model” or “Danish miracle”, without always specifying all the aspects of the economic operation of the country, in particular the strong rate of good citizenship and honesty of the population. The importation of a foreign model (for example in France) is always delicate, the safeguarding of an overall coherence being necessary. The great flexibility of the work world and the professional reconversion is one of the asset of the " model danois".

The operation of the job market is characterized by a mixture of flexibility (easy dismissals for the companies) and of a system of compensation high for the unemployed. One speaks about a model of Flexsécurité. Unemployment rate October 2007: 3,0% (81.700 people).

Taxation

August 1st

The taxation is particular in Denmark, with in particular social VAT. The tax Coin is one of highest in the world.

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