- Denmark has a population of around 5.6 million people and its capital and largest city is Copenhagen. Its economy relies heavily on human resources and imports raw materials from other countries.
- Denmark experienced budget deficits for the first time in recent history in 2009 and 2010 due to the global economic crisis but has since returned to surpluses. Exports, particularly to Germany, Sweden, and other European nations, are a major driver of Denmark's economy.
- Unemployment rose significantly from 2008 to 2010 during the crisis but has fallen back down in recent years, and inflation has remained moderate and stable. Overall, Denmark maintains a prosperous and developed economy.
7. The Country - Denmark
• ‘The Kingdom of Denmark’
• Total Area: 43075 square kilometers
• Capital: Copenhagen
• Bordered by: Sweden, Germany, Norway
• Official Language: Danish
• Official Currency: Danish Krone
8. Economy - mostly relies on the human resources
Industries - depend on the raw materials imported from the
other countries
Follows a liberal policy of trade
September for liget (The September Settlement) in 1899
No minimum wage for the workers or employees decided by the
govt.
The United States - largest trade partner of Denmark outside
Europe
- accounts for around 5% of total Danish
merchandise trade
The Country - Denmark
10. Growing GDP will increase the purchasing power of the people
GDP
192.00
194.00
196.00
198.00
200.00
202.00
204.00
206.00
208.00
210.00
2006 2007 2008 2009 2010 2011 2012
GDP
GDP (perchasing
power parity)
11. In 2009 and 2010. Denmark experienced Budget Deficit for
the first time in recent history.
Budget
-0.80
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2006 2007 2008 2009 2010
Budget Deficit
Budget Deficit
12. • 55.3% of GDP in 2010 is collected from taxes
and other receipts
• Budget surplus in 2010 - Tax collection and
other revenues are more than the outlays
• Forecast - More budget surplus in the
following year if goes increasing
Tax & Revenue
13. Net Export (+) = money inflow(+) & local currency value (+)
Net Export (-) = money inflow (-) & local currency value (-)
Net Import (+) = money expenditure (+) & local currency value (-)
Net Import (-) = money expenditure (-) & local currency value (+)
Net Export & Net Import
-15.00
-10.00
-5.00
0.00
5.00
10.00
2006 2007 2008 2009 2010 2011 2012
Net Export
Net Export
-15.00
-10.00
-5.00
0.00
5.00
10.00
2006 2007 2008 2009 2010 2011 2012
Net Import
Net Import
15. Positive net sales abroad = current account surplus
negative net sales abroad = current account deficit.
Current Account Balance
0.00
1.00
2.00
3.00
4.00
5.00
6.00
Current account
balance
16. Export & Import Partners
17.60%
13.80%8.10%
5.90%
5.60%
4.80%
4.70%
Export Partners
Germany Sewden UK US Norway Netherlands France
21.10%
13.70%
7.30%
6.80%
6.10%
5.50%
Import Partners
Germany Sweden Netherlands China UK Norway
18. Nominal GDP (+) & Real GDP (-) = GDP Deflator (+)
And Vice versa
GDP Deflator
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2006 2007 2008 2009 2010 2011 2012
GDP deflator
GDP deflator
20. High unemployment rate of 2009 & 2010 - Unemployed suffered a
loss in their standard of living, personal distress and sometimes life
time deterioration in their career opportunities
Employment & Unemployment
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
2006 2007 2008 2009 2010 2011 2012
Employment
Employment
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2006 2007 2008 2009 2010 2011 2012
Unemployment
Unemployment rate
21. Stock of FDI at Home-
December 2009 - $139.7 billion
December 2010 – $139.7 billion
Stock of FDI in Abroad –
December 2009 - $180.1 billion.
December 2010 - $183 billion.
Stock of FDI- at Home & Abroad
22. Inflation Rate in 2010: 2.30
Inflation Rate in 2009: 1.30
The residents of Denmark loose their
purchasing power in 2010 than to 2009
Inflation Rate
23. Net lending - extra amount provided in lending
purposes
Net borrowing - amount of money that is required to
finance
Net Borrowing and Net Lending
0.00
1.00
2.00
3.00
4.00
5.00
6.00
2006 2007 2008 2009 2010 2011 2012
Net lending(+) or
borrowing (-)