Denmark Economy

Denmark Economy  | read this item

Modern Denmark could be characterized by such financial services as communications, transportation and trade. The indicator of GDP growth rate touched the number 1.7% in 2008 in comparison with 3.2% in 2006 and the major role of industrial sector (about 25%).

The population of Denmark calculated 5 427 459 people with unemployment rate 3.8% in 2007.

Actually, Denmark was an agricultural country during the years. But after the World War 2 there was a necessity to raise manufacturing. The major industries were food processing, shipbuilding, windmills, textiles, chemicals and tourism.

Due to the fact that Denmark has poor mineral resources it has to perform trading with Great Britain, Germany, and Sweden mostly. In spite of the fact that Denmark economy has the evidence of demand constraint, it is still characterized by a high standard of living.

Denmark economy relies mostly on international trade as the country’s natural resources are limited. As a result these trading connection make the economy depend on price changes. Still after joining EU Denmark economy got many opportunities.

Just to compare certain features we are to analyze economy of 2008. It could be characterized with strong initial conditions, solid institutions and sound policies. As a result Denmark has the opportunity to manage the global financial crisis. Major policy priority was maintenance of fiscal sustainability. Also containment of unfavorable spillover effects should also be mentioned. Denmark economy didn’t face effect of US meltdown due to the fact that Danish banks hadn’t been influenced by US. In other words, temporary liquidity means were quite profitable during this period.

Topics: agricultural country, country, Denmark, economy, fact, gdp growth rate, Germany, global financial crisis, Great Britain, policy priority, population of denmark, rate, result, spillover effects, Sweden, trade, trading, US, world war 2