<hdr>The World Factbook 1994: Denmark<nl>Economy</hdr><body>
<list>
<item><hi format=bold>Overview:</hi> This modern 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's new center-left coalition government will concentrate on reducing the persistent 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. In the face of recent international market pressure on the Danish krone, the coalition has also vowed to maintain a stable currency. The coalition hopes to lower marginal income taxes while maintaining overall tax revenues; boost industrial competitiveness through labor market and tax reforms and increased research and development funds; and improve welfare services for the neediest while cutting paperwork and delays. Prime Minister RASMUSSEN's reforms will focus on adapting Denmark to the criteria for European integration by 1999; although Copenhagen has won from the European Union (EU) the right to opt out of the European Monetary Union (EMU) if a national referendum rejects it. Denmark is, in fact, one of the few EU countries likely to fit into the EMU on time. Denmark is weathering the current worldwide slump better than many West European countries. As the EU's single market (formally established on 1 January 1993) gets underway, Danish economic growth is expected to pickup to around 2% in 1994. Danish approval of the Maastricht treaty on EU political and economic union in May 1993 has reversed the drop in investment, further boosting growth. The current account surplus remains strong as limitations on wage increases and low inflation—expected to be around 2% in 1994—improve export competitiveness. Although unemployment is high, it remains stable compared to most European countries.
<item><hi format=bold>National product:</hi> GDP—purchasing power equivalent—$95.6 billion (1993)
<item><hi format=bold>National product real growth rate:</hi> 0.5% (1993)
<item><hi format=bold>National product per capita:</hi> $18,500 (1993)
<item>• <hi format=ital>consumption per capita:</hi> 6,610 kWh (1992)
</list>
<item><hi format=bold>Industries:</hi> food processing, machinery and equipment, textiles and clothing, chemical products, electronics, construction, furniture, and other wood products, shipbuilding
<item><hi format=bold>Agriculture:</hi> accounts for 4% of GDP and employs 5.6% of labor force (includes fishing and forestry); farm products account for nearly 15% of export revenues; principal products—meat, dairy, grain, potatoes, rape, sugar beets, fish; self-sufficient in food production
<item><hi format=bold>Economic aid:</hi>
<list style=hang>
<item>• <hi format=ital>donor:</hi> ODA and OOF commitments (1970-89), $5.9 billion
