World economies
Denmark
Denmark has a mixed economy based on services and manufacturing but has limited natural resources. The few significant and valuable natural resources available include mature oil and gas wells in the North Sea.
However, the country has enough oil and gas reserves to ensure its energy independence. It relies heavily on human resources and has one of the world’s lowest levels of income inequality, according to the World Bank.
Denmark is a wealthy country. Its GDP per-capita is among the highest in the world as is Danish taxation.
The Danish modern market economy features a high-tech agriculture sector, advanced industry with world-leading firms in pharmaceuticals, maritime shipping and renewable energy. However, the development of its heavy industry is slow due to limited natural resources.
Denmark is the world’s leading manufacturer of wind turbines and exports 85 per cent of its production. The trade and investment policies are liberal and encourage foreign investment.
Nearly 90pc of the country’s agricultural revenue comes from livestock production. Industry employs almost 20pc of the active population and contributes 22pc of GDP. The major activity sectors are the chemical, pharmaceutical and biotechnology industries. The services sector contributes around three-quarters of GDP, employing the largest share of the population 78pc.
The country is highly dependent on foreign trade, with exports comprising the largest component of GDP. It is a net exporter of food, oil, and gas and enjoys a comfortable balance of payments surplus, but depends on imports of raw materials for the manufacturing sector.
The global financial crisis of 2008-2009 adversely affected Danish GDP growth. Since 2010, however, it is experiencing a modest economic expansion.
The Danish economy is in a period of stable growth and rising employment, largely due to reforms that have provided the basis for a sustainable development. The economy further grew by 1.7pc in 2016. Employment growth remains robust, reaching 1.5pc in 2016, driven by private sector employment, particularly in the service sector.
Economic growth is forecast to strengthen this year and next, supported by robust private consumption and dynamic investment and stronger foreign demand. Employment growth is expected to remain strong.
The outlook over the next two years is generally good. The government expects to end 2017 with the highest growth rate for 10 years. According to the Danish Ministry for Economic Affairs, the government expects two per cent growth in 2017.
However, the Danish government expects the growth to decline slightly in 2018 to 1.8pc, following sluggish growth in public demand due to slightly weaker growth abroad, as well as the pressure on available production resources. Private consumption is forecast to remain the main growth driver.
The unemployment rate is expected to fall to 5.8pc in 2017 after hitting 6.2pc in 2016 4.2pc in 2017.
In 2017, the first half growth compared with the same period in 2016 was reported to be 2.7pc. The Denmark National bank predicts the economy to expand by 2.3pc in 2017.
In 2018 and 2019, annual growth is expected to be 1.8pc and 1.7pc. Employment is forecast to grow faster than the labour force, reducing the unemployment rate to 4.2pc in 2018.
In 2017 and 2018, the government deficit is estimated to be respectively 1.5pc and 1.1pc of GDP. The deficit on the structural balance proposed at 0.4pc of GDP in the budget for 2017. The deficits thus remain within the limits of the Budget Law and in relation to EU rules.
Netherlands