Denmark
OECD’s periodic surveys of the Danish economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.
Études économiques consacrées périodiquement par l'OCDE à l’économie du Danemark. Chaque étude analyse les grands enjeux auxquels le pays fait face. Elle examine les perspectives à court terme et présente des recommandations détaillées à l’intention des décideurs politiques. Des chapitres thématiques analysent des enjeux spécifiques. Les tableaux et graphiques contiennent un large éventail de données statistiques.
Economic growth is projected to remain robust at 2.3% in 2024 before slowing to 1.5% in 2025. Improving global trade will sustain non-pharmaceutical exports, while growth in the key pharmaceutical sector is set to moderate. Wage rises and ongoing disinflation will increase household purchasing power. Business investment will recover gradually as credit conditions improve and interest rates decrease. The main risks to the outlook relate to performance in the main exporting sectors and stronger than expected effects from rising labour costs on inflation and price competitiveness.
La croissance économique devrait rester vigoureuse en 2024, à 2.3 %, avant de se replier à 1.5 % en 2025. L’amélioration du commerce mondial favorisera les exportations de produits autres que pharmaceutiques, tandis que la croissance du secteur clé de la pharmacie devrait se tasser. La hausse des salaires et la poursuite de la désinflation permettront une augmentation du pouvoir d’achat des ménages. L’investissement des entreprises va progressivement reprendre sous l’effet de l’amélioration des conditions de crédit et de la baisse des taux d’intérêt. Les principaux risques qui entourent les perspectives sont liés aux performances des principaux secteurs d’exportation et aux effets éventuellement plus importants que prévu de la hausse des coûts de main-d’œuvre sur l’inflation et la compétitivité-prix.
This chapter includes data on the income taxes paid by workers, their social security contributions, the family benefits they receive in the form of cash transfers as well as the social security contributions and payroll taxes paid by their employers. Results reported include the marginal and average tax burden for eight different family types.Methodological information is available for personal income tax systems, compulsory social security contributions to schemes operated within the government sector, universal cash transfers as well as recent changes in the tax/benefit system. The methodology also includes the parameter values and tax equations underlying the data.
Denmark has 71 tax agreements in force as reported in its response to the Peer Review questionnaire, including the multilateral Nordic Convention concluded with the Faroe Islands, Finland, Iceland, Norway and Sweden (the Nordic Convention). See the Multilateral convention concluded by Denmark, Finland, the Faroe Islands, Iceland, Norway and Sweden: for the avoidance of double taxation with respect to taxes on income and on capital (1996, 1997, 2008 and 2018). Forty-one of those agreements, including the Nordic Convention, comply with the minimum standard.
Following a robust recovery from the COVID-19 shock, Denmark’s GDP growth has slowed and the economy has been running at two speeds between domestic and specific international activities. Headline inflation has fallen, but underlying price pressures remain high. While the public finances are robust with a budget surplus and low public debt, population ageing poses long-term risks to the Danish social model as long-term care spending increases and the working-age population declines, calling for efficiency gains at the local level. Denmark has put in place ambitious greenhouse gas emission reduction targets and made significant strides in achieving efficient climate change mitigation policies. Further policy reforms to advance the green transition can help to reduce dependence on fossil fuel energy and achieve ambitious targets.
The Danish labour market is strong, but tensions have increased since the pandemic. The post-pandemic recovery boosted labour demand, but structural factors, such as late labour market entry by the young, changing skills requirements and obstacles to the recruitment of migrants, contribute to persistent shortages and impact the wider economy. Lowering the effective tax rate on labour income could reduce disincentives to higher working hours and to moving from part-time to full-time employment. Adapting the workplace to an ageing population and adjusting early retirement schemes could help to extend working lives. Targeting the tenth grade to students with greater learning needs, reducing student allowances and introducing an income-contingent loan system for master’s students could also encourage faster entry into the labour market. There is room to increase the recruitment of foreign-born workers, as well as improving their integration. The demographic, digital and green transitions will transform jobs and skills requirements, demanding an agile education and training system throughout the working life. Encouraging vocational education and training, notably by facilitating mobility between vocational and academic tracks, would ensure strong skills in areas where workers are lacking.
This Survey is published on the responsibility of the Economic and Development Review Committee of the OECD, which is charged with the examination of the economic situation of member countries.
After a strong recovery, economic activity has slowed on the back of higher energy prices and cost of living. Inflation has fallen significantly since its peak in October 2022, but underlying price pressures have remained high.
In 2021, not counting non-employer enterprises, SMEs accounted for 98.7% of all enterprises and 38.7% of all full-time employees in Denmark.
Gross domestic product (GDP) is the standard measure of the value of final goods and services produced by a country during a period minus the value of imports. This subset of Aggregate National Accounts comprises comprehensive statistics on gross domestic product (GDP) by presenting the three different approaches of its measure of GDP: output based GDP, expenditure based GDP and income based GDP. These three different measures of gross domestic product (GDP) are further detailed by transactions whereby: the output approach includes gross value added at basic prices, taxes less subsidies, statistical discrepancy; the expenditure approach includes domestic demand, gross capital formation, external balance of goods and services; and the income approach includes variables such as compensation of employees, gross operating surplus, taxes and production and imports. Gross domestic product (GDP) data are measured in national currency and are available in current prices, constant prices and per capita starting from 1950 onwards.
The Pensions at a Glance database includes reliable and internationally comparable statistics on public and mandatory and voluntary pensions. It covers 34 OECD countries and aims to cover all G20 countries. Pensions at a Glance reviews and analyses the pension measures enacted or legislated in OECD countries. It provides an in-depth review of the first layer of protection of the elderly, first-tier pensions across countries and provideds a comprehensive selection of pension policy indicators for all OECD and G20 countries.