Euromoney Country Risk

EUROMONEY COUNTRY RISK

Read the latest analysis on sovereign, geo-political and structural risk

 
Get up to date country risk ratings in 186 countries

Member login



Lost your password?

Euromoney Country Risk

Euromoney Country Risk
List of countries.

Denmark Denmark

Overview Change score Analyses Experts
 
Sponsored section
Denmark – Quick View
ECR score89.21 (Mar 2011)
ECR rank4 (Mar 2011)
Economic
GDP Q3 2010USD 76,381.55 million
GNI Q3 2010USD 77,567.48 million
FDI inflow 2009USD 128.60 billion
Inflation 20102.3%
Central bank assets 2011USD 77,762.19 million
Unemployment rate 20103.6%
Government DeficitNA
Tax RevenueNA
Political
Government typeConstitutional Monarchy
Recent political crisisNA
Economic freedom rank 20118th
Freedom of information rank 201011th
Corruption perception index 20101st
Structural
Crude Birth rate 200911 (per '000)
Population BalanceUnder 14 – 18.2%
Population BalanceMen over 60 – 21.1%
Population BalanceWomen over 60 – 24.9%
Under-5 Mortality rate 20084 (per '000)
Life expectancy years78.7 years
Literacy rate99%
Internet access86.1%

[Top] Economic Overview

Denmark has an industrialised, welfare-based economy. The currency is the Danish Krone (DKK). ‘Danmarks Nationalbank’ is the central bank of the country. Denmark primarily exports food and energy.

(Source:National Bank) 

Gross Domestic Product

Denmark GDP (current prices) (DKK million)

From late 2008 to mid-2009, Denmark’s GDP witnessed a steady decline. However, GDP experienced growth from Q2 2009 to Q3 2010. 

GNI (gross national income)

Denmark GNI (current prices) (DKK million)

(Source: National Statistics)

Denmark’s GNI witnessed a continuous decline from Q2 2008 to Q2 2009. However, from the Q3 2009 onwards the GNI has increased (Q3 2010).

Tax rate

The income tax in Denmark for individuals ranges from 38-59%, while corporate income tax rate is 25%. This is one of the highest individual tax rates in the world, but it enables the government to provide free education and healthcare facilities. 

The rate of VAT (Value-Added Tax) across the country is 25%.

(Sources: worldwide-tax)

Inflation

Denmark Inflation (%) 

Denmark’s inflation rate varied from a low of 1.2% to a high of 3.4% between 2001 and 2010. The highest rate was 3.4% in 2008.  

Inflation was seen to be rising from 2009 to 2010, due to increasing oil prices and consumer demand. The government introduced a stimulus package that includes deduction in taxes and release of pension savings.

(Sources:Bloomberg,Businessweek, European Economic Forecast)

Central bank assets (DKK million)

Year

Gold

Foreign assets

Claims on the IMF,Etc.

Monetary-policy lending

2011 (Jan)

16,938

396,285

18,310

2,400

2010

12,260

392,695

16,776

9,275

2009

12,260

370,861

15,683

104,220

2008

9,781

202,777

3,406

240,876

2007

9,084

161,722

2,561

216,794

2006

7,700

164,556

3,189

153,735

2005

6,941

204,204

3,557

135,296

2004

5,124

208,456

5,684

72,635

2003

5,298

214,441

7,416

-

2002

5,196

183,034

8,268

-

2001

4,979

138,633

8,549

-

2000

4,683

110,851

5,127

-

 

(Sources: National Bank (2000-2009), National Bank(2010-2011))

From 2000 to 2010, an overall increase was observed in the Danmarks Nationalbank’s gold reserves and foreign assets, while policy lending displayed a considerable decline from 2009 to 2010. Claims on the IMF and other assets have fluctuated strongly from 2000 to 2010. 

(Sources: National Bank)

FDI (foreign direct investment)

FDI inflow in the country shows a steady rise from 2004 to 2008. However, in 2009 it declined marginally.

FDI (DKK billion)

Denmark FDI (DKK billion)

(Source: National Bank)

[Top] Financial Indicators & Government Financial

CPI (consumer price index)

Denmark’s CPI has steadily risen since 2001, primarily due to rising energy costs.

Denmark CPI (Annual Average)

(Source: National Statistics)

Interest rate

In 2010, the country’s interest rates were 0.60% on current account, and 0.70% on certificates of deposit. The lending rate was 1.05%.

(Source: National Bank)

Currency in circulation

Banknotes in circulation (2009)

In 2009 total banknotes in circulation amounted to 54,456 million, and total coins circulated were 5,610 million.

Banknote Denomination

1000 Kr.

500 Kr.

200 Kr.

100 Kr.

50 Kr.

Total

Million

28,988

1,218

5,485

4,729

14,037

54,456

(Source: National Bank)

Coins in circulation (2009)

Coin Denomination

20 Kr.

10 Kr.

5 Kr.

2Kr.

1 Kr.

50 ear

25 ear

Total

Million

2,369

1,220

673

511

508

167

162

5,610

(Source: National Bank)

Exchange rate

Denmark Exchange rate (DKK oer 100 units of USD)

(Source: National Bank)

Denmark currency experienced a fall against the USD from 2001 to 2008, however it has been increasing slowly since 2009.

Government finances

Balance of trade (2010) (DKK million)

Denmark Trade balance (DKK million)

(Source: National Statistics)

From 2005 to 2007 Denmark’s balance of trade recorded a sharp decline, moving from a surplus of DKK 1,638 million to a deficit of DKK 1,112 million. However, this was countered in 2008 and 2009 when the trade balance witnessed a considerable increase from deficit to surplus.

In 2010, Denmark had a balance of trade surplus of DKK 1,009 million as compared to DKK 3,367 million in December 2009.

(Source: Danish Energy Agency)

Government consumption expenditure

Denmark Quaterly government consumption expenditure (DKK million)

(Source: National Statistics)

Denmark’s Government consumption expenditure showed a continuous rise from third quarter of 2009 to second quarter of 2010. Thereafter it recorded a fall from DKK 98,136 million (Q2 2010) to DKK 97,890 million (Q3 2010).

[Top] Labour Force and Employment Overview

Unemployment rate

Denmark Unemployment rate (%)

(Source: National Statistics)

From 2008 to 2009, Denmark’s unemployment rate increased from 1.8% to 3.8%. In 2009, it fell marginally and reached 3.6% by November 2010.

Minimum wage

Denmark’s national government does not impose minimum wage rates. National wages are determined through sectoral collective agreements.

(Source: fedee) 

Level of unionisation

Denmark has a labour force of 2.66 million with 2.06 million trade union members, making a union density of about 70%.

The main union bodies, from largest to smallest are:

·      Lands organisationen (LO) - 1.22 million members in 2009

·      Functionaererne og Tjenestemaendenes Faellesrad (FTF) or Confederation of Professionals, organizer of public sector employees-357,800 members.

·       Akademikernes Centralorganisation (AC), organizer of graduate level employees -133,200 members.

(Source: worker-participation)

[Top] Political Stability

Denmark is a constitutional monarchy, with a multi-party system.

The Venstre and Conservative parties make up the current Government. Mr. Lars Lokke Rasmussen is the current Prime Minister of Denmark, since 2009

(Source: Ministry of Foreign Affairs)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey that measures the perceived level of corruption across countries worldwide. Denmark ranked 1st on the 2010 index, indicating that country is least corrupt nation in the world.

(Source: transparency.org)

Freedom of information

In 2010, the nation was ranked 11th on the Press Freedom Index, with a total score of 0.0.This indicates freedom of media.

(Source: rsf.org)

Some of the daily newspapers published in Denmark are the Morgenavisen Jyllands-Posten, the Berlingske Tidende, the Politiken, the Ekstra Bladet, the Dagbladet Information, and the BT.

(Source: bbc)

Regulatory environment

Denmark Economic Freedom Indices

(Source: Heritage.org)

Denmark’s economy ranks 8th on the 2011 Economic Freedom index, with a score of 87.6, due to its free trade and open investment policies. The country thus stands 3rd among 43 European countries.

(Sources: heritage)

Judicial system

The highest judicial authority in the country is the Supreme Court, followed by two High Courts. Thereafter, there is a Maritime Court, a Commercial Court, the Land Registration Court and 24 District Courts.

(Source: Denmark Jurisdiction)

Denmark has an independent agency called the Courts of Denmark, whcih performs the administration of all courts. Courts hold executive and legislative power. They follow the European Convention on Human Rights. The Government is at liberty to interfere in court cases.

There are around 380 judges and 2,500 employees under the judicial system.

(Source: Denmark Jurisdiction)

[Top] Demographic Overview

The country’s population in 2011 is registered at 5.56 million, with a median age of 40.8.

(Source: undp)

Denmark Population

(Source: National Statistics)

Denmark’s population increased from 5.41million in 2005 to 5.56 million in 2011.

Population balance

In 2009, the poplation below 14 years of age constituted 18.2%. Men above 60 years of age made up 21.1% of total population, and women constituted 24.9%.

(Source: un.org)

Urbanisation

In 2010, 86.9% of the population ws classified as urban.

(Source: undp)

Dependency ratio

In 2010, 53.2% of the population were dependent.

(Source: undp pg: 180)

Life expectancy

The life expectancy is 78.7 years

(Source: undp

Under-5 Mortality Rate

In 2008, the under-5 mortality (per 1000 live births) was registered at 4.

(Source: undp)

Crude birth rate

In 2009, the crude birth rate was registered at 11 (per ‘000).   

(Source: unicef.org)

Ethnic environment

Denmark has is diverse in ethnicities.  The population includes people of Scandinavian, Inuit, Faroese, Turkish, German, Polish, British, Iraqi, Iranian, Bosnian, Lebanese, Balkan, Pakistani, Somali and Afghani descent.

(Source: intute)

HDI (human development index)

The country was considered to have a ‘Very High Human Development’ ranking, it was considered 19th on the Human Development Index (HDI) 2010.

(Source: undp)

The country offers public welfare facilities such as rent subsidy, family allowances and child allowances. In 2009, 693,737 families benefited from the family allowance facility. (Source: National Statistics)

Migration

From 2008 to 2009, the number of residence permits granted to immigrants declined from 69.28% to 56.9%.

Citizens from Nordic region can reside, work and travel in Denmark without the mandate of a residence permit. 

In 2010, immigrants, mainly from Turkey, Germany and Iraq, accounted for 7.5% of the population.  

(Source: Ministry of Refugee, Immigration and Integration Affairs, National Statistics)

[Top] Soft Infrastructure

Education

The literacy rate of the country is 99%. Education is free and compulsory up to university level.

(Sources: Worldbank,Guardian: UNESCO)

In 2010, the country scored 0.813 on UNDP (United Nations Development Programme) Inequality-adjusted Education Index, and 0.738 on the Inequality-adjusted Income Index. In the same year 59% of females and 65.6% of males (aged 25 and older) were reported to have acquired at least a secondary education.

(Source: undp)

Health

The government provides free lifelong healthcare coverage to all its citizens. This includes most medical services such as acess to hospital facilities, general practitioners, dentists, pediatrics and specialist practitioners. The health sector is tax funded, and thus every person with a Danish residence permit has a right to Danish health insurance.

The county and municipal levels of the National Health Service make all major decisions.

8 to 10% of GDP is spent on healthcare.

Despite an efficient healthcare system, the life expectancy of Danes is the lowest in Western Europe. This is attributed to their habits of alcohol consumption, smoking and an overall poor diet.

(Sources: National Statistics, Ministry of Refugee, Immigration and Integration Affairs, oecd, civitas)

[Top] Hard Infrastructure

The main transport infrastructure consists of roadways and railways.  However road traffic is minimized.

Roads

In 2010, the total road network of Denmark was 73,574 km, of which State roads accounted for 3,787 km, and Municipality roads constituted 69,745 km..   

(Source: National Statistics)

Railways

The total railway network is measured at 2,667 km, of which electrified lines cover 642 km. 

(Source: Ministry of Foreign Affairs)

Airports

The country has 39 public airports, with major airports located in Copenhagen, Billund, Aarhus, Aalborg, Karup, Esbjerg and Bornholm.

The table below shows Denmark’s major airports:

City

No. of Runways

Copenhagen

3

Billund

1

Århus

2

Aalborg

2

Karup

3

Esbjerg

1

Bornholm

1

Sønderborg

1

Roskilde

2

Thisted

1

(Source:National Statistics)

Sea Ports

There are 124 sea ports in total. Frederikshavn, Hirtshals, Esbjerg, Rødby and Elsinore are the key ports.

(Source: Ministry of Foreign Affairs)

Metropolis

The buisness vcenter, Copenhagen inhabits around 1.8 million people. The airport in Copenhagen is the largest international air transport hub in Northern Europe. The city has a bridge connecting the country to Sweden. Its Railway network includes regional and national routes connected to European railways. Large commercial estates and industries are built in and around the city. Copenhagen is the only city with an urban railway.

The new urban development zone scheme provides foreign firms with locations to set up business. This zone is situated between Copenhagen City and Copenhagen Airport. (Source: Ministry of Foreign Affairs)  

Monopolized Industry

The public transport system is a monopolized industry. It is controlled by an agency of the Danish Ministry of Transport. (Source: Ministry of Foreign Affairs)

Telecommunications

Radio

Danmarks Radio (DR) is Denmark’s public broadcaster. It has two TV networks, national stations and regional stations. Radio 100 FM and Nova FM are commercial broadcasters.

Television

DR TV, TV2, TV3 and Kanal 4 are the satellite/cable networks available in the country. (Source: bbc)

Internet

There are about 4.8 million internet users in Denmark by 2010. From 2000 to 2010 there has been an internet user growth of 143.6%. (Source: internetworldstats)

Telephone, Internet and Mobile subscriptions

 

H1 2010

H2 2009

H1 2009

Fixed Network Subscriber Lines

1,905

2,062

2,251

Euromoney country risk banner
 
All material subject to strictly enforced copyright laws.
© 2017 Euromoney Institutional Investor PLC.