Denmark's Economy and Business Opportunities

576 Words2 Pages
Denmark is described as a "modern market economy with a high-tech agricultural sector, state-of-the-art industry with world-leading firms in pharmaceutical, maritime shipping and renewable energy" (CIA World Factbook, 2012). The country's economy experienced a housing boom in the mid-2000s and housing prices dropped strongly during 2008-2009 much like what happened in the United States. Denmark's GDP shrunk during these years, declining 0.8% in 2008 and 5.8% in 2009. Real GDP growth in 2010 was 1.3% but the country slipped back into recession in 2011, finishing the year with just 0.8% growth (CIA World Factbook, 2012). Despite the economic problems, Denmark has a sound unemployment rate that has held steady at 6.1% of as 2011. The small size of the country and the relatively slow growth rate of its population have allowed Denmark to maintain this relatively healthy unemployment rate relative to other European countries. The World Bank classifies Denmark as a high income country and a member of OECD (World Bank, 2012). The country had been growing between 2 and 3% annually during the 2000s prior to the recession. During these years, the unemployment rate was lower, in the 4-5% and just over 3% in 2008 prior to the bursting of the housing bubble and the onset of the economic downturn. As a result, Denmark's current situation reflects challenges associated with reaching full employment in the economy, but its excellent starting point means that the country is relatively
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