Denmark Economic Outlook
A highly developed, export-driven economy:
Denmark boasts one of the strongest and most resilient economies in Europe, with a high standard of living and strong fiscal management. The country benefits from a well-diversified economy, with key industries including pharmaceuticals, renewable energy, advanced manufacturing, and shipping. Denmark's strong export sector is driven by companies such as Maersk (shipping), Novo Nordisk (pharmaceuticals), and Vestas (wind energy).
Green energy leadership:Denmark is a global leader in renewable energy, particularly wind power, which supplies a significant portion of its electricity needs. The government has ambitious climate policies and continues to invest in green technologies, making the country a model for sustainable economic development. The energy transition has not only enhanced Denmark’s energy security but also positioned it as a leader in exporting green technologies.
Labor market strength and welfare model:The Danish economy is characterized by a highly flexible labor market, known as the "flexicurity" model, which balances strong worker protections with business-friendly policies. High wages and social benefits ensure a strong consumer market, but the country faces long-term demographic challenges, including an aging population that could strain the welfare system.
Denmark’s economic outlook:Denmark’s future economic growth will be supported by strong exports, continued innovation in renewable energy, and robust government finances. However, challenges such as rising interest rates, global trade uncertainties, and labor shortages in key sectors may pose risks. Long-term success will depend on continued investments in technology, sustainability, and workforce development.
Denmark's Macroeconomic Analysis:
Nominal GDP of USD 407 billion in 2023.
GDP per capita of USD 68,597 compared to the global average of USD 10,589.
Average real GDP growth of 2.2% over the last decade.
Sector Analysis
In 2022, services accounted for 66% of overall GDP, manufacturing 14%, other industrial activity 19%, and agriculture 1%. Looking at GDP by expenditure, private consumption accounted for 46% of GDP in 2023, government consumption 23%, fixed investment 22%, and net exports 9%.International trade
In 2021, manufactured products made up 69% of total merchandise exports, mineral fuels 4%, food 17%, ores and metals 2% and agricultural raw materials 2%, with other categories accounting for 6% of the total. In the same period, manufactured products made up 69% of total merchandise imports, mineral fuels 13%, food 14%, ores and metals 2% and agricultural raw materials 2%, with other goods accounting for 0% of the total. Total exports were worth USD 172 billion in 2024, while total imports were USD 131 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.2% in the decade to 2023. To read more about GDP growth in Denmark, go to our dedicated page.
Fiscal policy
Denmark's fiscal surplus averaged 1.6% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 3.8% in the decade to 2024. For more information on Denmark's unemployment click here.
Inflation
Inflation averaged 1.7% in the decade to 2024. Go to our Denmark inflation page for extra insight.
Monetary Policy
Denmark's monetary policy rate ended 2024 at 2.60%, up from -0.05% a decade earlier. See our Denmark monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the krone weakened by 13.9% vs the U.S. dollar. For more info on the krone, click here.
Economic situation in Denmark
At 0.9%, sequential growth in Q3 undershot both Q2’s print and a preliminary estimate of 1.2% on decelerating exports and fixed investment. Turning to Q4, the economy should have lost steam. That said, available data is mixed: Manufacturing output fell in October–November from Q3’s average, but goods exports strengthened over the same period and, in Q4, retail sales rose at a faster clip than in Q3. In politics, in early 2025, U.S. President Trump threatened to “tariff Denmark at a very high level” if it resisted his offer to purchase Greenland. Denmark has since allocated over EUR 350 million to increase surveillance and enforce sovereignty over the territory. A diplomatic spat with the U.S. would hit trade and security. Meanwhile, the pharma giant Novo Nordisk recently committed around EUR 1.2 billion to build a new factory in Denmark, boding well for investment and manufacturing.Denmark Economic Forecasts
Projections out to 2034.45 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 17 expert analysts.
Want to get insight on the economic outlook for Denmark in the coming years? FocusEconomics collects projections out to 2034 on 45 economic indicators for Denmark from a panel of 17 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Denmark economy. To download a sample report on the Denmark's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.