Denmark: A roaring Nordic economy

Denmark has one of the most upbeat economies in the European Union, and despite the downslide it has worked wonders. Fuelled by a strong household consumption, growth rate is projected at 1.9 per cent. Investments
and soaring exports are buoying the economy, as the Scandinavian state picks up on the premise of low interest rates and an increasing capacity utilisation. Higher real wages and rising property prices are other index indicators, which predict bullish trends in the bourses for a nation of six million people.

Copenhagen is obsessed with reforms meant to address structural changes as the country goes from one high to another. Agriculture, services sector and manufacturing are the three salient pillars of its economy.

The World Bank says Denmark has a per capita income of around $59,000, which is one of the most prosperous among its contemporaries. Similarly, with a GDP of $295 billion in 2016, the country is the 39th largest economy in the world. Its macroeconomic indicators are also quite promising, and with the demand surging in the manufacturing and construction sectors, Denmark is likely to have a stable growth in years to come.

Denmark's trump cards are a secure legal environment for investment and businesses, coupled with banking regulations and an enterprising entrepreneurship. Banks are doing very good, and the lending policy is one of stringent regulation and business-friendly. This has acted as a catalyst in government taking the lion's share in investment and public spending, ultimately raising the index of human development in the public sector. The private sector too takes a cue from monetary stability and is eager to pump in money in infrastructure and export-related businesses.

Denmark is one of the unique economies in the world whose value of exports and imports taken together equals 100 per cent of GDP. Trade, thus, remains the country's lifeline, and its strategic geography makes it more invincible. The government's profoundness to foreign trade and investment is no secret, an aspect that has helped it excel even during the recessionary days of Europe. This is why Forbes has listed it as the 6th Best country for business.

Denmark is a welfare state and enjoys a very high standard of living, which is a testimony of equitable distribution of wealth and an all-found attitude of the state towards its citizens. The country's obsession for trade liberalisation and
its resolve to uphold sovereignty despite being part and parcel of the 28-member union ups its nationalistic credentials.

The Nordic state is an emerging middle order power in Europe and what makes it indispensable are its inherent economic potentials and an overtly influencing foreign policy.

Source: Khaleej Times