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Category: Denmark’s economic analysis

Why invest in Denmark?

First off, since Denmark is a member of the EU, they have a lot of connections to other countries that could lead to extra revenue. In addition,  Denmark has a very well-educated population with excellent foreign language skills. A high proportion of the population has at least a university degree. Denmark lets you focus on your business making it relatively easy to start a business. High flexibility and a safe business environment are the characteristics of the Danish business environment. Establishing a business can be done in a matter of hours and at very low costs. Denmark has some of the most flexible hiring and firing rules in the world. This reduces costs of scaling business operations up or down. Public sector services are also among the best in the world. Finally, Denmark’s excellent transportation system and general location in Northern Europe make it easy to travel from one country to another. The best industries to invest in in Denmark are the strongest for jobs, which include technology, science, and business industries.


Denmark’s Retail Environment

In 2011, retailing in Denmark recorded positive if value growth, after a couple years of high unemployment and decreased sales following the recession. This increase was mostly thanks to grocery and internet retailing. Danish consumers remained price sensitive and cautious about spending, thus impulse spending and spending on non-essential items such as apparel or home and gardening items continued to decrease in 2011.

The three main reasons behind the increase in internet sales are convenience, accessibility, and lower prices. In addition to the growth in internet sales, m-commerce is showing up as another valuable channel. Danes increasingly use their mobile phones for shopping online. The strong popularity of mobile phones, both conventional phones and smartphones, encouraged retailers to develop m-commerce solutions.The laws that dictate how late stores can stay open have become less strict, and will be completely erased by the end of 2012.

Most retailers in Denmark are either small or medium scale. There do not tend to be many chains of retailers. On the pedestrian-only street in Copenhagen, Stroget, there are many different types of retailers. There are high end retailers, specialty food shops, food markets, and clothing stores. While there are some clothing stores that are high-end and expensive, they also have tons of cheaper clothing stores like Zara and H&M. Denmark has stores that satisfy all customer needs at any budget.

H&M on Stroget in Copenhagen

Denmark developments in Science and Technology

The Danish Agency for Science, Technology and Innovation gives funding for research training, including Industrial PhDs. These allocations emphasise, among other things, the quality development and internationalisation of Danish research training programs. The Agency administers the funding that is earmarked for independent research and for thematically defined and politically prioritised research areas.

The establishment of a healthy environment for Danish research includes creating a framework for researcher mobility. This covers efforts to attract and retain international researchers and knowledge workers and efforts to strengthen young researchers’ career options in Danish research environments. There are also many activities for promoting research communication between the scientific community and society in general.

The Danish Council for Technology and Innovation has two main tasks – to give advice to the Danish Minister for Science, Technology and Innovation and to administrate a variety of instruments for the minister. Through the Danish Council for Technology and Innovation, the main goal of  helping the Danish Government to ensure the best possible conditions for innovation in Denmark is fulfilled. This goal is satisfied by focusing on four main areas. These areas of focus are collaboration between business and research, access to highly skilled workers, authorized technological service, and commercialization of research

Both the technology and science field are major industries in Denmark and so progress is always being made towards new developments in these areas.

Denmark Economic Analysis-government spending, trade, imports, and exports

Government spending accounts for over half of GDP. Since the economy is open to global trade and investment, Denmark benefits from high degrees of business freedom, investment freedom, and financial freedom. The overall regulatory environment encourages entrepreneurial activity. The banking sector has been under stress but remains guided by sensible regulations. Monetary stability is well maintained, and inflationary pressures are under control.

As of January 2012, inflation was at 2.3%. Denmark’s strong economy depends heav­ily on foreign trade, and the private sector is characterized by many small and medium-size companies.Flexible and modern employment regulations sustain the labor market. Denmark’s trade regime is fairly competitive and promotes the dynamic growth of trade. The country continues to be one of the world’s most open economies with respect to foreign investment, and the investment code is clear and efficiently administered. The modern and diverse financial sector has been undergoing a period of instability, with a number of banks performing poorly, but those in the business are hopeful that it will pick back up in the near future.

Denmark’s principal exports are machinery, instruments, and food products. The United States is Denmark’s largest non-European trading partner, accounting for 5.0% of total Danish goods trade in 2010. Aircraft, computers, machinery, and instruments account for the majority of Denmark’s imports.

Denmark Economic Analysis-salaries and relations

The majority of Denmark’s jobs are either in the technology, medical, or financial sector, so Denmark’s salaries start out pretty well. Women account for 21% of the workforce and men account for the rest (79%). Denmark is no exception to the tradition of women being paid significantly lower salaries than men are. Denmark’s capital of Copenhagen has the people who generally earn the highest salaries, and small towns are where the people earn the lower salaries.

The people of Denmark are very direct when it comes to dealing with their business partners. They tend to keep to themselves, and don’t really participate in small talk. They would rather get to the business at hand and finish the meeting. Relations amongst employers and employees are peaceful, and there is a distinct separation between personal and work life. It’s typical for employees’ personal life to not be involved in their work life.

Denmark’s Median Salary by Job

National Salary Data
Project Manager, Information Technology (IT) $78,092
Sr. Software Engineer / Developer / Programmer $59,331
Software Engineer $62,903
SAP Consultant $59,241
Software Developer $38,179
Mechanical Engineer $46,706
Financial Controller $72,282
Country: Denmark | Currency: USD | Updated: 6 Apr 2012 | Individuals Reporting: 2,159

Denmark Economic Analysis-Media

Radio and Television-In Denmark, there is a strong public-sector television presence with state-owned Danmarks Radio (DR) operating 4 channels and publicly-owned TV2 operating roughly a half dozen channels. In addition, there are broadcasts available of privately-owned stations via satellite and cable feed. Danmarks Radio operates 4 nationwide FM radio stations, 15 digital audio broadcasting stations, and about 15 web-based radio stations. There are approximately 250 commercial and community radio stations are that are operational.97% of households have at least one television and on average the typical person watches 20 hours of TV a week.

Newspapers and Telephones-There are 33 prominent newspapers in Denmark and it is estimated per day that 1,507,000 people get a newspaper. The internet has put a damper on the newspaper business, just as it has all over the rest of the world. Around 84% of people have a cell phone. There are 3,350,285 landlines in Denmark. Especially in the cities, families and young people don’t have a home number and a cell number-they usually only have the cell number. In the country, they may only have a landline number.

Danish Newspapers

Denmark Economic Analysis-ethnic groups and modes of transportation

Denmark is a very country with people from many different backgrounds. The many ethnic groups in Denmark include: Scandinavian, Inuit, Faroese, German, Turkish, Iranian, Somali. In addition, 87% of Danes live in urban areas. The capital of Denmark, Copenhagen, is home to the most people with their population total reaching 1.174 million as of July 2011. There are 2.36  migrants for every 1000 people. Perhaps the number of migrants is so large is because of Denmark’s proximity to many other countries.

There are numerous modes of transportation in Denmark, which include bus, train, car, boat, plane, and cycling. In the cities the most common form of transportation is either on foot or by bike. Also, train transportation is very common and the train system is relatively easy to learn, especially where I studied abroad in Copenhagen. Another popular form of transportation in the cities, especially Copenhagen is by boat, since they are surrounded by water. There are so many ports to make boat traveling easy. Here are a list of the most common ports-Aabenraa, Aalborg,  Aarhus,  Copenhagen, Esbjerg, Fredericia,  Frederikshavn, Grenaa,  Hanstholm, Helsingor, Hirtshals,Holstebro-Struer, Horsens, Hundested Hvide Sande, Kalundborg, Klaksvik, Kolding,  Korsoer, Køge, Middelfar, Naestved, Nyborg, Nykobing Falster, Odense, Orehoved, Osterby, Randers, Ronne, Skagen, Stubbekoebing, Thyboron, Torshavn  Vejle,Vestero, Marinas, and Marinas in Bornholm. The people in Denmark are very lucky for the fact that they have lots of natural minerals they can sell. These minerals include petroleum, natural gas, salt, chalk, limestone, gravel, stone, and sand. Another resource that generates a lot of revenue for Denmark is fish. The country is surrounded by water so it would only make sense that the fishing industry would be a huge part of Denmark’s economy.

Copenhagen Train Station

Denmark Economic Analysis-population and age distribution

As of July 2011, the population of Denmark was 5,543,453. The age expectancy on average is 78.78 years. If you divided it up by sex, men are expected to live to 76.39 years while women are expected to live 81.31 years. The growth rate per year is .239% and the birthrate per 1000 is 10.22. As of 2011, the breakdown of the percent of the population among different age groups was as follows:

0-14 years: 17.6% (male 500,265/female 474,829)

15-64 years: 65.3% (male 1,811,198/female 1,798,507)

65 years and over: 17.1% (male 417,957/female 527,132)

Also as of 2011, the gender distribution amongst age groups was:at birth:

at birth: 1.06 male(s)/female

under 15 years: 1.05 male(s)/female

15-64 years: 1.01 male(s)/female

65 years and over: 0.8 male(s)/female

total population: 0.97 male(s)/female