Denmark in 2006 possessed an estimated population of 5 427 459. GDP growth rate stood at 3.20 % for both 2006 and 2007. This figure scaled down to 1.70 % for 2008. In 2006, Denmark's industrial sector accounted for 25% of its national GDP. Comparable figure for agriculture was way below at 2%. Unemployment rate in Denmark fell from 5.70 % in 2006 to 3.80 % in 2007. Financial services, communications, transportation and trade are nerve centers of modern Denmark.
Denmark economy overview
Traditionally Denmark was an agricultural country. The World War II period saw a rapid rise in importance of its manufacturing sector. Traditional sources of livelihood of Denmark include livestock, farming of cereals, root crops and fishing. Leading industries here include following.
- Food processing
- Medical equipment manufacture
- Iron and steel manufacture
- Nonferrous metals
- Wood products
- Transportation equipment
Denmark possess scanty mineral resources. Its main trading partners are Great Britain, Germany, Sweden and other member nations of European Union. Danish economy is characterized by a high standard of living. However this economy faces a demand constraint due to small size of its domestic market. Since natural resources are limited, Denmark economy is dependent on international trade for import of raw materials and export of fished products. This makes the economy susceptible to international price fluctuations. Denmark has benefited from an improved terms of trade after joining EU. This country has experienced a sustained productivity rise in postwar period.
Denmark economy 2008
IMF Mission has made some interesting observations regarding performance of Denmark's economy on October 2008. According to IMF, strong initial conditions, solid institutions and sound policies have placed Denmark in a better position to effectively cope with adverse effects of current global financial crisis. Maintenance of fiscal sustainability and containment of adverse spillover effects were deemed requisite policy priorities. Since Danish banks have minor exposures to subprime assets in US, direct effect of US global meltdown has been minimal here. Problems have stemmed from resultant risk aversion behavior and liquidity dry up. Temporary liquidity facilities currently extended by Danmarks Nationalbank have been fruitful in this respect.