DNK Denmark profile

Denmark operates as a constitutional monarchy with a parliamentary system. Government formation relies on coalition bargaining and a culture of policy consensus, which supports stability but can slow reform. Public institutions are transparent and bound by rule of law, with low corruption and effective oversight. The municipal layer holds substantial responsibilities, yet fragmentation and cross jurisdiction coordination can hinder large scale reforms. Immigration and integration policy remains politically salient, while climate and housing agendas require broad political support and long term planning. Alignment with the European framework is pragmatic, defense commitments align with allied structures, and the civil service remains professional, though bureaucratic processes can feel cumbersome to outsiders.

Colonial history Involved in colonization, particularly in the Caribbean and Greenland
Former colonizer Denmark
Government type Constitutional monarchy
Legal system Civil law system
Political stability High

The economy rests on a diversified mix of services, manufacturing, logistics, and knowledge based activities. Export oriented sectors feed into global value chains, supported by a skilled workforce and a strong welfare system. The labor market is flexible and collaborative through collective bargaining, sustaining productivity and high wage levels, but concerns arise about competitiveness and inclusivity for less skilled groups. The transition to a greener economy drives investment in energy, infrastructure, and innovation, yet industrial adjustments and regulatory costs pose burdens for some firms. Housing shortages and elevated living costs in urban areas influence household budgets and regional development.

Currency name Danish Krone (DKK)
Economic system Mixed economy with a high degree of government involvement
Informal economy presence Minimal
Key industries Pharmaceuticals, maritime shipping, renewable energy, agriculture
Trade orientation Export-oriented economy

Denmark comprises a peninsula and numerous islands with a long coastline and flat landscapes, shaping settlement patterns and transport. The environmental strategy emphasizes clean water, air quality, biodiversity, and circular economy measures; wastewater, waste management, and resource efficiency are advanced. Climate change risks create pressure on coastline resilience and agricultural adaptation. Nitrogen pollution from farming affects ecosystems and water bodies, requiring policy balancing between agricultural productivity and environmental goals. Urban density pressures influence land use decisions, green space preservation, and adaptation needs.

Bordering countries Germany
Climate type Temperate oceanic
Continent Europe
Environmental Issues Climate change impacts, pollution
Landlocked No
Natural Hazards Flooding, storms
Natural resources Natural gas, petroleum, fish, limestone
Terrain type Flat and low-lying, with some hills in the north

The social model provides universal health care, education, and welfare support, contributing to high living standards and relatively low poverty risk by international comparison. In practice, housing affordability in cities and regional disparities test social cohesion. Integration of migrants and refugees remains politically and socially salient, with debates over schooling, labor market access, and social inclusion. An aging population places emphasis on pension sustainability and care services, while mental health and youth well being require sustained attention. Gender equality exists and progress is notable, yet persistent pay gaps and representation gaps in some sectors persist.

Cultural heritage Rich Viking history, strong traditions in design, literature, and the arts
Driving side Right
Education system type Public education system, compulsory up to age 16
Ethnic composition Predominantly Danish, with minority groups including Greenlandic Inuit and others
Family structure Nuclear family is common, emphasis on gender equality in family roles
Healthcare model Universal healthcare system funded by taxes
Major religions Christianity (predominantly Evangelical Lutheran)
Official languages Danish

Transport and logistics combine rail, road, ports, and air links, with priorities for cycling and urban mobility. Energy infrastructure emphasizes wind, offshore generation, and district heating, contributing to energy security and emissions goals. Digital infrastructure and e government expansion improve public service delivery, data use, and innovation capacity. The innovation ecosystem is supported by universities, research institutes, and private collaboration, though large scale investment remains sensitive to planning, financing, and permitting processes. Rural connectivity, maintenance needs, and urban congestion pose ongoing challenges for a resilient and integrated system.

Internet censorship level Low
Tech innovation level High
Transport system type Well-developed public transport system including rail, bus, and cycling infrastructure

Development indicators

Indicator Year Value Rank 5Y Rank Change
Military expenditure (current US$) 2023 8,144,932,202 30 -9
Political Stability and Absence of Violence/Terrorism 2023 0.851 41 +5
Regulatory Quality 2023 1.84 5 -9
Rule of Law 2023 1.91 2 -6
Unemployment, total (% of total labor force) 2023 5.09 50 -18
Birth rate, crude (per 1,000 people) 2023 9.7 162 -1
Death rate, crude (per 1,000 people) 2023 9.8 38 -7
Exports of goods and services (% of GDP) 2024 69.7 24 -13
GDP per capita (current US$) 2024 71,852 11 -5
GDP per capita, PPP (current international US$) 2024 79,514 13 -4
High-technology exports (current US$) 2023 16,067,378,321 28 -3
Hospital beds (per 1,000 people) 2021 2.51 29 -33
Imports of goods and services (% of GDP) 2024 58.9 36 -22
Inflation, consumer prices (annual %) 2024 1.37 129 -10
Life expectancy at birth, total (years) 2023 81.9 34 -6
Mortality rate, under-5 (per 1,000 live births) 2023 3.4 146 -2
Net migration 2024 25,639 34 -20
Patent applications, residents 2021 1,090 30 +7
Population, total 2024 5,976,992 114 +2
Poverty headcount ratio at national poverty lines (% of population) 2021 12.4 52
Prevalence of undernourishment (% of population) 2022 2.5 91 +1
Renewable energy consumption (% of total final energy consumption) 2021 39.5 58 -8
Research and development expenditure (% of GDP) 2022 2.89 10 +2
Foreign direct investment, net inflows (% of GDP) 2024 4.21 26 -152
Current account balance (% of GDP) 2024 13 8 -9
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources 2021 26.4 61 -2
Total greenhouse gas emissions excluding LULUCF per capita (t CO2e/capita) 2023 7.03 56 +6
Current health expenditure (% of GDP) 2023 9.42 9 -13
Domestic general government health expenditure per capita, PPP (current international US$) 2022 6,233 7 +1
Suicide mortality rate (per 100,000 population) 2021 10.5 54 -1
Individuals using the Internet (% of population) 2024 99.8 1 -3
Control of Corruption 2023 2.38 1 -1
Government Effectiveness 2023 2.02 4 -3
Logistics performance index: Quality of trade and transport-related infrastructure (1=low to 5=high) 2022 4.1 5

Compare Denmark to other countries

Demography and Health

Denmark’s population stands at about 5.98 million in 2024, reflecting a small but persistent population base that supports a high level of social and economic activity. Life expectancy at birth is 81.9 years (2023), signaling strong health outcomes and effective public health systems. The crude birth rate is 9.7 per 1,000 people while the crude death rate is 9.8 per 1,000, indicating a gradual aging of the population and a balanced demographic profile overall. Net migration recorded in 2024 is 25,639 people, contributing to population growth and helping to offset aging trends and labor market dynamics. The country exhibits relatively low poverty, with 12.4% living below national poverty lines in 2021, and food security is solid, as undernourishment stands at 2.5% in 2022. Health system financing is robust: current health expenditure accounts for 9.42% of GDP in 2023, and domestic health expenditure per capita, PPP is around 6,233 international dollars (2022), signaling substantial public investment in health services. Denmark has 2.51 hospital beds per 1,000 people (2021), and the suicide mortality rate is 10.5 per 100,000 (2021), highlighting ongoing public health challenges that accompany high living standards. Digital connectivity is nearly universal, with 99.8% of the population using the Internet in 2024, underscoring the health, education, and social benefits of a high-tech welfare state while also increasing exposure to mental health considerations in a modern society.

Economy

Denmark’s economy is among the world's most advanced and prosperous. GDP per capita is 71,852 current US$ in 2024, and GDP per capita, PPP stands at 79,514 international dollars, reflecting a high standard of living and productive mix of sectors. The country is highly open to global trade: exports of goods and services account for 69.7% of GDP in 2024, while imports amount to 58.9% of GDP, indicating a deeply integrated economy with complex value chains. The current account balance is strong, at 13.0% of GDP in 2024, suggesting a healthy external position supported by competitive exports and prudent macro management. Inflation is moderate at 1.37% in 2024, and the unemployment rate is 5.09% in 2023, signaling a flexible labor market with continued room for policy calibration to address long-term shifts. Denmark sustains a strong emphasis on innovation and knowledge creation: research and development expenditure equals 2.89% of GDP in 2022, while high-technology exports reach about 16.1 billion USD in 2023 and resident patent applications total 1,090 in 2021, illustrating a vibrant science- and technology-driven economy. Foreign direct investment net inflows are 4.21% of GDP in 2024, underscoring a favorable investment climate. The economy also demonstrates a sustained transition toward cleaner energy and sustainable growth, with renewable energy contributing a substantial share of energy consumption (39.5% in 2021) and ongoing commitments to climate and efficiency goals that complement long-run competitiveness.

Trade and Investment

Denmark’s trade and investment profile is characterized by high openness and a strong emphasis on efficiency and innovation. Exports of goods and services constitute 69.7% of GDP in 2024, while imports account for 58.9% of GDP, reflecting broad participation in global supply chains and a robust trading position. The country maintains a sizable current account surplus of 13.0% of GDP in 2024, illustrating net external earnings from its export prowess and capital services. Foreign direct investment net inflows amount to 4.21% of GDP in 2024, signaling sustained investor confidence and a welcoming environment for capital, technology transfer, and cross-border collaboration. Denmark’s logistics and transport framework supports this openness, with a Logistics Performance Index (quality of trade and transport-related infrastructure) of 4.1 (2022) on a 1–5 scale, indicating highly efficient and reliable trade logistics. Digital connectivity underpins trade competitiveness as 99.8% of the population uses the Internet (2024), enabling sophisticated e-commerce, fintech, and service exports. The country’s track record in high-technology goods—supported by R&D intensity and patent activity—further strengthens its position as a hub for knowledge-intensive production and innovative services, while renewable energy integration creates new export and cost-competitiveness advantages in a global low-carbon economy.

Governance and Institutions

Denmark exhibits a governance framework characterized by exceptional institutional quality and transparency. The Control of Corruption score is 2.38, ranked number 1 in global comparisons, underscoring pervasive integrity in public administration. Regulatory Quality is 1.84 (rank 5), and Rule of Law is 1.91 (rank 2), signaling a predictable, fair, and enforceable legal system that protects property rights and contract fidelity. Government Effectiveness is 2.02 (rank 4), indicating capable public services and reliable policy implementation. Political Stability and Absence of Violence/Terrorism score 0.851 (rank 41), suggesting a generally stable political environment with some residual risk typical of modern democracies, but not a primary constraint on investment or reform. Defense spending measured as current military expenditure is about $8.14 billion in 2023, reflecting Denmark’s role within NATO and its approach to security while remaining a small, open economy. Taken together, these indicators illustrate a robust governance ecosystem that supports business certainty, innovation, and long-term planning, and they help explain why Denmark consistently ranks high for ease of doing business and public trust in institutions.

Infrastructure and Technology

Denmark’s infrastructure and technology profile combines advanced digital connectivity, efficient trade logistics, and strategic investment in innovation. Internet usage stands at 99.8% of the population in 2024, highlighting a high-capacity digital economy and enabling widespread adoption of online services, e-government, and digital learning. The Logistics Performance Index score of 4.1 in 2022 points to high-quality trade and transport infrastructure, facilitating efficient movement of goods and a strong export orientation. Health and science infrastructure is reinforced by 2.51 hospital beds per 1,000 people (2021) and a total health expenditure of 9.42% of GDP (2023), along with domestic health expenditure per capita, PPP of about $6,233 (2022), which supports comprehensive health services and research. Innovation is deeply embedded in the economy: resident patent applications total 1,090 (2021), and high-technology exports reach roughly $16.1 billion (2023). R&D intensity is 2.89% of GDP (2022), reinforcing Denmark’s position as a global leader in knowledge-based industries. Renewable energy already supplies about 39.5% of total final energy consumption (2021), illustrating substantial progress in clean energy deployment and grid integration that underpins technological leadership and climate ambitions. Additionally, Denmark’s resilience is enhanced by strong export performance and an open investment climate that encourages technology transfer, startups, and digital services across sectors.

Environment and Sustainability

Denmark demonstrates a strong commitment to environmental stewardship and sustainable development, though it faces the challenges typical of a high-income economy undergoing energy and industrial transitions. Per capita greenhouse gas emissions excluding LULUCF are about 7.03 t CO2e (2023), underscoring ongoing decarbonization efforts and the importance of energy choices for long-run climate targets. Renewable energy accounts for a substantial share of final energy consumption—about 39.5% in 2021—reflecting Denmark’s leadership in wind and other low-carbon technologies and its export potential in green energy solutions. The level of water stress, measured by freshwater withdrawal as a share of available resources, is 26.4% (2021), indicating manageable yet meaningful water-resource management considerations for a country with high living standards and industrial activity. The prevalence of undernourishment is 2.5% (2022), and the poverty rate stands at 12.4% (2021), highlighting the ongoing need to balance environmental policies with social equity. Denmark’s sustainability model integrates high-quality governance, innovation, and social protections to pursue a low-emission, efficient, and prosperous economy, positioning it as a benchmark for climate-smart public policy, industrial practice, and sustainable urban development.