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OECD Economic Surveys: Denmark 2005

image of OECD Economic Surveys: Denmark 2005

The 2005 OECD Economic Survey of Denmark, which has the most equal income distribution among OECD countries and has among the highest incomes, focuses on sustaining growth and preserving the welfare system in the face of a rapidly ageing population. In particular, it examines governmental reforms to foster fiscal sustainability and labour reforms to boost the labor supply. It also examines how improving competition could boost growth and how improving the educational system could raise productivity.

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Assessment and Recommendations

Measured by per capita incomes, Danish living standards have been in the top handful of OECD countries for several decades. Moreover, Denmark has paid great attention to its social goals such as income equality and environmental sustainability. Twenty years of comprehensive reforms have put the economy on a robust footing without any short-term macroeconomic imbalances. Hence, policymakers – and this Survey – have been able to focus mainly on the long-term issues rather than day-to-day cyclical pressures. Denmark’s performance...

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