Economy—overview: This thoroughly modern market economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, and high dependence on foreign trade. Denmark is a net exporter of food. The center-left coalition government will concentrate on reducing the persistently high unemployment rate and the budget deficit as well as following the previous government's policies of maintaining low inflation and a current account surplus. The coalition also vows to maintain a stable currency. The coalition has lowered marginal income taxes while maintaining overall tax revenues; boosted industrial competitiveness through labor market and tax reforms and increased research and development funds; and improved welfare services for the neediest while cutting paperwork and delays. Denmark chose not to join the 11 other EU members who launched the euro on 1 January 1999. Because of the global slowdown, GDP growth may fall to 1% in 1999.

GDP: purchasing power parity—$124.4 billion (1998 est.)

GDP—real growth rate: 2.6% (1998 est.)

GDP—per capita: purchasing power parity—$23,300 (1998 est.)

GDP—composition by sector:
agriculture: 4%
industry: 27%
services: 69% (1997)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 3.6%
highest 10%: 20.5% (1992)

Inflation rate (consumer prices): 1.8% (1998 est.)

Labor force: 2,895,950

Labor force—by occupation: private services 40%, government services 30%, manufacturing and mining 19%, construction 6%, agriculture, forestry, and fishing 5% (1995)

Unemployment rate: 6.5% (1998 est.)

Budget:
revenues: $62.1 billion
expenditures: $66.4 billion, including capital expenditures of $NA (1996 est.)

Industries: food processing, machinery and equipment, textiles and clothing, chemical products, electronics, construction, furniture, and other wood products, shipbuilding

Industrial production growth rate: 1.3% (1996)

Electricity—production: 50.608 billion kWh (1996)

Electricity—production by source:
fossil fuel: 97.6%
hydro: 0.05%
nuclear: 0%
other: 2.35% (1996)

Electricity—consumption: 35.208 billion kWh (1996)

Electricity—exports: 19.2 billion kWh (1996)

Electricity—imports: 3.8 billion kWh (1996)

Agriculture—products: grain, potatoes, rape, sugar beets; beef, dairy products; fish

Exports: $48.8 billion (f.o.b., 1998)

Exports—commodities: machinery and instruments, meat and meat products, fuels, dairy products, ships, fish, chemicals

Exports—partners: Germany 21.4%, Sweden 11.6%, UK 9.6%, Norway 6.2%, France 5.3%, US 4.6%, Netherlands 4.5% (1997)

Imports: $46.1 billion (f.o.b., 1998)

Imports—commodities: machinery and equipment, petroleum, chemicals, grain and foodstuffs, textiles, paper

Imports—partners: Germany 21.7%, Sweden 12.7%, Netherlands 7.8%, UK 7.6%, France 5.6%, Norway 5.2%, US 5.0%, Japan (1997)

Debt—external: $44 billion (1996 est.)

Economic aid—donor: ODA, $1.6 billion (1995)

Currency: 1 Danish krone (DKr) = 100 oere

Exchange rates: Danish kroner (DKr) per US$1—6.408 (January 1999), 6.701 (1998), 6.604 (1997), 5.799 (1996), 5.602 (1995), 6.361 (1994)

Fiscal year: calendar year