2019 OECD Economic Surveys: Denmark 2019

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Living standards and wellbeing are high in Denmark. Economic conditions have improved in recent years and the steady expansion is projected to continue. A prolonged series of pension and benefit reforms has delivered sound public finances and strengthened potential growth, among others by indexation of statutory retirement ages to life expectancy. Improving public sector efficiency remains a challenge and would benefit from further digitalisation and reform of collective bargaining. Danish firms are close to the technological frontier thanks to digitalisation and favourable business framework conditions. Nonetheless, productivity growth has been disappointing in the recent past with a particular weakness in less knowledge-intensive service industries. Boosting productivity growth is essential to ensure that living standards and wellbeing remain high. This requires further improving business framework conditions, notably competition pressures. Policy needs to embrace innovative technologies by leaning against attempts to discourage or exclude them and by tackling unintended or outmoded obstacles in legislation and regulation. Reducing high marginal taxes, broadening innovation activity and attracting more high-skilled foreign workers are also priorities.


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Key Policy Insights

Denmark has traditionally delivered high living standards to its citizens and left few behind. High and equally-distributed incomes translate into strong feelings of wellbeing according to a range of measures (). What is more, there is equality of opportunities across generations in terms of income, education and health Invalid source specified.. Commitment to addressing environmental challenges has made Denmark a frontrunner in green growth. A comprehensive series of pension and benefit reforms has bolstered public finances and lifted more people into the labour market, which will help to sustain these good outcomes. In the future, lifting labour force participation by increasing the statutory retirement ages and facilitating the integration of migrant workers will also help to secure that this continues.



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