Gross National Product (GNP): $164bn

Exchange rates against the US$ over the last year: 6.47 Danish kroner (7.522)

SCORE CARD

World GNP ranking: 25th GNP per capita: $30,600 Balance of payments: $4.92bn Inflation: 2.4% Unemployment: 4%

Strengths

Low inflation and unemployment. Substantial balance-of-payments surplus. Gas and oil reserves. Strong high-tech, high-profit manufacturing sector. Skilled workforce.

Weaknesses

Heavy tax burden. Labor costs and historically strong currency affect competitiveness.

Profile

Denmark's mix of a large state sector and a private sector has been successful. GDP per capita is one of the highest among the OECD countries. However, total taxation, at about 50%, is among the world's highest. In November 2001 the Liberal government promised to fund increased welfare spending and lower taxation by extending privatization and reducing development aid.

In the 1980s the government stabilized the exchange rate and tightened budget controls in order to reduce inflation and reverse the balance-of-payments deficit. Growth slowed in the early 1990s, but an economic upturn between 1993 and 2000 was first led by private consumption and then buoyed by exports and business investment. Growth slowed significantly in 2001, but had regained momentum by mid-2002.

Voters have refused to accept EU monetary union, most recently in a "no" vote in 2000 in a referendum on the euro. However, Denmark meets the EU's convergence criteria for monetary union, the krone is pegged to the euro, and economic policies follow those of the participating states.

EXPORTS

IMPORTS

ECONOMIC PERFORMANCE INDICATOR

From "The Financial Times World Desk Reference" © Dorling Kindersley 2004