Accountancy in Denmark

Country overview

Denmark is a small country of islands in Northern Europe and is a part of Scandinavia. Copenhagen is the capital and the principal language is Danish. Denmark has approximately 5.6 million inhabitants, of which 2.9 million are active employees. The Danes are generally well educated yet customarily informal. They therefore have a relaxed and humorous approach to life, which is reflected in their attitude towards authority.

Characteristic features of Denmark are primarily the welfare system, which ensures equal rights and access to public services for all, and the democratic government. Denmark is also characterised by gender equality, freedom of speech, an active business life and high-quality research and development environments.

Denmark has a royal head of state and is governed by a parliamentary democracy, within which there is a multi-party structure with several parties represented in Government. Denmark has a capitalist system of production, characterised by private ownership of businesses and production. However, there is considerable regulatory control from the state and other public authorities, and they provide comprehensive services for the citizens.

Economic overview

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.

Transport infrastructure

Denmark covers an area of approximately 43,000 km2. Denmark’s geography is characterised by a long coastline of  7,314 km and its many islands.

Denmark has a highly-developed infrastructure and a well organised and efficient public transport system. For moving freight inland, road is the most commonly used form of transport, 5% is by sea and the remainder mainly by train. In the past, transport by sea dominated

Denmark’s international freight traffic with 76% of freight sent by sea, just under 20% by road and the remainder mainly by rail and plane.


Latest version updated 12th October 2017

Country Breakdown

5.7

Million

Population

kr

Danish Krone

Currency

$ 305

Billion

GDP

2.211

Million

km2