DENMARK / SALARY

Introduction

Denmark is a country found in Europe. Its capital city is Copenhagen. The country has numerous islands and has some of the oldest monarchies in the world.  The country has a modern mixed economy characterized by comfortable living standards, foreign trade, and high government services. The country uses the Danish krone as its currency.

The article will help you learn about Denmark's economy. The main parts highlighted include the GDP growth, economic sectors, level of employment and unemployment, exports and imports, and the country's inflation CPI.

GDP

World Outlook Database estimates for Denmark nominal GDP for the year 2021 is around $ 371 billion. It was ranked as number thirty-six globally in the year 2020. The GDP in purchasing power parity is $ 355 billion giving it a rank of number fifty-one globally in the year 2020.

The estimates for nominal GDP per capita and GDP in terms of PPP in 2021 are $ 63,645 and $ 61,008, respectively.  Sweden has the 7th position for nominal GDP per capita and number ten for Purchasing power parity GDP per capita globally.

Denmark's GDP growth for the various economic sectors for the year 2021 was as follows.

·       1.6 percent for agriculture.

·       1.2 percent for manufacturing and mining.

·       14.4 percent for industries.

·       7.7 percent for utilities and construction.

·       75.2 percent for the service sector.

Denmark's GDP growth has been reducing over the years. The GDP growth for the year 2018 was 2.4 percent, while that for 2019 was 2.3 percent. The estimates for the year 2020 and 2021 were 4.5 percent and 3.5 percent respectively.

Economic sector

·       Agriculture sector

Agriculture is a minor contributor to Denmark’s economy.  Most of the lands are family-owned. Denmark has good soils which are highly fertilized, making it ideal for practicing farming. Some of the main products include Cereals, barley, turnips, oats, rye, and sugar beets.

Besides farming, Denmark also practices animal husbandry.  The animals kept include dairy and beef cattle, poultry, fur animals, and pigs.  The animals are mainly exported hence contributing to the country's economy.

Fishing is a major activity in Denmark hence making it one of the largest exporters of fish products.  The main species exported include flatfish and Salmon.

·       Manufacturing sector

The manufacturing sector makes a significant production in Denmark's economy. In the year 2017, the manufacturing sector contributed 1.2 percent of Denmark's GDP growth. The sector has also employed many people. The main manufacturing sectors include pharmaceuticals, food processing, metal product producers, machinery, and transport equipment industries.

·       Service sector

The service sector is the highest contributor to Denmark's economy. It has the largest GDP growth in the country and also employs the highest number of employees.  The percentage of the workforce by the service industry was about 79.9 percent in the year 2017.

Some of the service jobs offered in the country include education, health, and social services, public administration, and tourism. There are various parks in Copenhagen which attract a large number of tourists.

·       Natural resources

Denmark has limited resources; however, the main natural resources include oils and natural gas. The natural oils are found in the North Sea part of Denmark. The country also uses coal power plants to generate electricity. However, Denmark banned the use of power plants, and industries began using biofuel instead as it is environmentally friendly. Denmark exports more oil, gas, and electricity than it imports. The subsidizing of wind farms also facilitates the high production of electricity.

·       Transport services

Denmark has made huge investments in the building of roads. The bicycle was a popular means of transport in Denmark in the olden days. Major investments have been made to link the road and rail between Copenhagen and Malmo.  The main features in Denmark's transport sector are the bridges and many harbors.

Some of the bridges found in Denmark include the green belt, which connects Zealand and Funen, and Oresund, which links Copenhagen and Malmo. The most common means of transport is private vehicles.

Employment Sector

1.    Employment

Denmark's labor force in the year 2019 was 3,009,405. Statistics also show that by the year 2018, Denmark's employment rate was 77.5 percent. The service sector has the highest labor force. The second is the industry sector, third utilities and constructions, fourth agriculture, and finally the mining and quarrying sector. The average gross salary as of the year 2017 was $ 5,819 monthly.

2.     Unemployment

Denmark's unemployment as of August 2020 was 6.1 percent. The youths have the highest number of unemployed people accounting for 12.2 percent of the unemployment population.

Exports and Imports

Exports

In 2017, Denmark's exports were $ 113.6 billion, and the main exports include dairy products, fish, furniture, wind turbines, meat, meat products, and machinery and instruments. Denmark's main export partners include Germany, Sweden, United States, Norway, China, and the United Kingdom.

Imports

Denmark's imports for the year 2017 stood at $ 94.93 billion.  The main import partner is Germany as Denmark imports about 21.3 percent. Besides Germany, other import partners include Sweden, Netherlands, China, Norway, and Poland. The products imported include raw materials, chemicals, grains, foodstuffs, Consumer goods, and machinery and equipment.

Inflation

Denmark has relatively low inflation rates. The inflation rates for 2019 and 2020 were 0.7 percent, and 0.4 percent respectively. The main reason behind Denmark's low inflation rate is the food prices. The food prices are relatively low and weigh about 10.5 percent of the overall consumer price index.

Conclusion

Denmark has a massive economy. The country uses a modern mixed economy which facilitates comfortable living standards for the people. The service sector contributes to the highest GDP growth and it has also employed the largest workforce. The manufacturing sector comes second while the agricultural sector has the minimal contribution to the economy.  Denmark is the 7th largest for nominal gross per capita and the 10th largest for purchasing power per capita income. The country has low inflation due to the relatively low food prices.

The main industries contributing to Denmark's economy include wind turbines, iron and steel, food processing, manufacturing and processing, textiles, clothing, transportation equipment, electronics, furniture, and other wood products.