Share sensitive information only on official, secure websites. [31] However, the Napoleonic Wars caused Copenhagen to lose its status as an international centre of finance and trade. From danmarkshistorien.dk, Aarhus University. [79], Denmark has an unemployment insurance system called the A-kasse (arbejdslshedskasse). In Spring 2018, the so-called Fiscal Sustainability Indicator was calculated to be 1.2 (by the Danish government) respectively 0.9% (by the Danish Economic Council) of GDP. Unemployment by sex and age annual average. What the world can learn about equality from the Nordic model Within the technology / ICT sector, there are a few specific areas in which Denmark stands out: audio and sound technology: Denmark is a global leader in the audio and sound technology industries, with many internationally recognized brands such as Bang&Olufsen, Brel & Kjr, and Oticon. While unemployment rates have soared across Europe, the official Polish figures have hardly budged, and are the lowest in the EU according to the latest Eurostat figures. [78] Denmark had a government budget surplus of 1.1% of GDP in 2017.[78]. [42] Over the years, the wealth of the Danish pension funds have accumulated so that in 2016 it constituted twice the size of Denmark's GDP. The labour market is also traditionally characterized by a high degree of flexicurity, i.e. The reasons that make Denmark's economy so successful are a very developed infrastructure, an efficient workforce and an advanced welfare system. Responding to this, age eligibility rules for receiving public age-related transfers were changed. Altogether, the amount of revenue from taxes paid in 2017 amounted to 46.1% of the GDP. 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It is this knowledge that Denmark now aims to exploit in the transport sector by focusing on intelligent battery systems (V2G) and plug-in vehicles. Denmark's Social Trust in Action - IMF From danmarkshistorien.dk, Aarhus University. Following a monetary reform after the Napoleonic wars, the present Danish central bank Danmarks Nationalbank was founded in 1818. Denmark houses a number of significant engineering and high-technology firms, within the sectors of industrial equipment, aerospace, robotics, pharmaceutical and electronics. The global Great Recession during the late 2000s, the accompanying Euro area debt crisis and their repercussions marked the Danish economy for several years. Why Danes Happily Pay High Rates of Taxes - US News A growing awareness that future demographic changes, in particular increasing longevity, could threaten fiscal sustainability, implying very large fiscal deficits in future decades, led to major political agreements in 2006 and 2011, both increasing the future eligibility age of receiving public age-related pensions. The electricity grids of western Denmark and eastern Denmark were not connected until 2010 when the 600MW Great Belt Power Link went into operation. Denmark has a very long tradition of adhering to a fixed exchange-rate system and still does so today. A large part of the pension wealth is invested abroad, thus giving rise to a fair amount of foreign capital income. Denmarks standard of living is among the highest in the world with a GDP per capita of $67,196 in 2021. The cooperative structure also extends to both the housing and banking sector. This is the conclusion drawn by Danmarks Nationalbank in a projection for the Danish economy, in which the gross domestic product (GDP) is forecast to increase by 3.3 per cent. Nyt fra Danmarks Statistik nr. But, in fact, Denmark, separated from Sweden by a bridge, has been far more successful: Denmark's death rate from Covid-19 per million people is less than one-third of Sweden's, and . Both use the Danish krone as their currency, but form separate economies, having separate national accounts etc. [121], Denmark is a long-time leader in wind energy and a prominent exporter of Vestas and Siemens wind turbines, and in 2019 Denmark's exports of wind-turbine technology and services amounted to 8.9 billion.