Written and Produced by Addere Revision
The Danish economy is small and open, very dependent on trade with other countries, and has no influence over international trading conditions or central economic factors (e.g. through affecting interest rates).
Denmark’s economic policy is in line with EU guidelines, which were jointly agreed by EU countries in the interest of their long-term development and employment. The Danish currency is the krone (crown). The international symbol is DKK, but most prices are notated as “kr.” in Denmark. Denmark has chosen to stay outside the EMU, but participates in the ERM2 with a central parity at DKK 7.46 per euro and a fluctuation band of +/- 2,25%.
Denmark has traditionally been an agrarian country and agriculture is still a key economic sector, contributing 20% of export earnings. Since the end of World War II, however, manufacturing and services have gained in importance, employing 20% and around 47% of the labour force respectively (2004). Manufacturing and services contribute respectively 18% and almost 50% gross domestic product, and agriculture 4 per cent. Danish ships, which operate in foreign waters, further contribute substantially to the economy.
Participation in the labour market in Denmark is very high. Of those aged 16-67, 78.6% (2012) are in the labour force. The high employment rate of Denmark is first and foremost due to the great number of women in the labour market.
This document describes some of the key commercial and taxation factors that are relevant on setting up a business in Denmark. The document includes information on: