Danish economy: Resilient, competitive and AAA-rated

The northern nation withstood the COVID-19 crisis relatively unscathed. Its robust manufacturing and export sectors have already rebalanced its gross domestic product to pre-pandemic levels, while its 2021 growth forecast was recently raised from 2.8 to 3.8 percent. Due to its flexible labor market, the country only suffered a minor fall in employment of a slight 0.6 percent from 2019 to 2020. Like its Scandinavian counterparts, prudent fiscal policies and larger checkbook have allowed it to shrug off the crisis, giving it a large advantage on the global stage.

Europe’s easiest place for doing business packs a unique social model

Mirroring its Nordic neighbors, Denmark maintains a highly democratic social framework with high taxes, raised benefits and an open economy based on social corporatism. The country has far below average poverty in comparison to other advanced nations, with the poorest 20 percent of households earning 9.5 percent of the nation’s total income. Along with its record low poverty levels, Denmark ranks second in the EU 2020 Gender Equality Index, falling just behind Sweden. The country is currently making great strides towards the implementation of a four-day workweek, pioneering the future of work in the EU.

A trailblazer for rapid energy transition and sustainability

Danes have traditionally been leading the way when it comes to sustainability. The country ranked second in the world in the 2020 Global Sustainability Index, largely due to its ambitious 2019 climate act that set a 70 percent reduction in greenhouse gas emissions by 2030 from 1990 levels and complete decarbonization by 2050. Denmark was the first nation in the world to set a target to end the use of fossil fuels by 2050, effectively cutting coal usage by 36 percent in 2019 alone while massively tapping into its renewable potential. A total of 47 percent of Denmark’s energy capacity came from wind in 2020. The nation is also a leader in low-impact transportation, with almost twice as many bicycles than cars due to progressive urban planning. While other countries are making promises towards committing to sustainability, Denmark already has the numbers to prove it.

A world-class R&D, innovation and education environment

With a population of only 5.7 million people, Denmark is home to eight universities and nine performance arts institutions. The government has a long-standing tradition of giving academic freedom and autonomy to its institutions to allow for a creative and high quality of education. While the country’s academic curricula are vast, research and innovation are aimed at Denmark’s larger industries: renewables engineering, pharmaceuticals, life sciences and trade. Education is free and is highly attended by the population, with the percentage of those awarded a bachelor’s degree by the age of 30 among the highest in OECD countries. The Danish government continues to focus on education to build its long-term economic goals and showcase the country as a leader in innovation.