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Home , Anders Samuelsen, Astrid Krag, Bjarne Corydon, Christian Friis Bach, Christine Antorini, Danmarks Nationalbank

Denmark Country Profile

Denmark

Country Profile

Politics

Economy

Trade & Industries

General Profile Total area 43,094 sq km Population 5,543,453 (July 2012 est.) 2007 2008 2009 2010 2011 Growth Population World (in Billion) YoY 6.6 6.7 6.8 6.9 7.0 1% Government type constitutional monarchy Queen MARGRETHE II (since 14 January 1972); Heir Chief of state Apparent Crown Prince FREDERIK, elder son of the monarch (born on 26 May 1968) Prime Minister Helle THORNING-SCHMIDT (since 3 October Head of government 2011) Capital temperate; humid and overcast; mild, windy winters and Climate cool summers Danish, Faroese, Greenlandic (an Inuit dialect), German Language (small minority) Major City COPENHAGEN (capital) 1.174 million (2009)

Economy Profile 2009 2010 2011 World GDP Real Growth -0.8% 5% 3.6%

World GDP (in Trillions) 58.1 63.3 70.2

Denmark GDP Growth -5.8% (2009 est.) 1.3% (2010 est.) 1% (2011 est.) GDP $330.5 billion (2011 est.) GDP – Per capita $40,200 (2011 est.) agriculture: 4.5%; industry: 19.1%; services: 76.4% (2011 GDP – Composition by sector

est.) Profile General Inflation 2.8% (2011 est.) Exchanges Rates 5.291 (2011 est.) Danish kroner (DKK) per US dollar

Primary Economy Sector Manufacturing; Chemicals; Electricity, Coal, Gas, and Oil; Chapter:

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Cosntruction; Tourism; Wholesale and Retail Trade; Telecommunications; Financial Services; Transportation

Unemployment Rate 6% (2011 est.)

Economy Profile Economy Chapter: Chapter:

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Aalborg, , Copenhagen, Ensted, Esbjerg, Fredericia, Ports and Terminals Kalundborg

percent of vote by party - 26.7%, Social Democrats 24.9%, Danish People's Party 12.3%, Social Liberal Party 9.5%, Socialist People's Party 9.2%, Unity List 6.7%, Liberal Alliance 5%, Conservative People's Party 4.9%, other 0.8%; seats by party - Election results Liberal Party 47, Social Democrats 44, Danish People's Party 22, Social Liberal Party 17, Socialist People's Party 16, Unity List 12, Liberal Alliance 9, Conservative People's Party 8; note - does not include the two seats from and the two seats from the  Min. of Agriculture, Food, & Fisheries :  Min. of Business Affairs & Growth :  Min. of Children & Education :  Min. of Climate, Energy, & Construction :  Min. of Cultural Affairs : Uffe ELBAEK  Min. of Defense : Nick HAEKKERUP  Min. for Development Cooperation :  Min. of Ecclesiastical Affairs :  Min. of Economic Affairs :  Min. of Employment :  Min. of Environment :  Min. of Equality : Manu SAREEN  Min. of European Cooperation : Ministry Name  Min. of Finance :  Min. of Foreign Affairs : Villy SOVNDAL  Min. of Health & Prevention :  Min. of Interior Affairs : Margrethe VESTAGER  Min. of Justice : Morten BODSKOV  Min. of Nordic Cooperation : Manu SAREEN  Min. of Research, Innovation, & Continuing Education : Morten OSTERGAARD  Min. of Social Affairs & Integration : Karen HAEKKERUP  Min. of Taxation : Thor Moger PEDERSEN  Min. of Towns, Housing, & Rural Affairs : Carsten HANSEN  Min. of Trade & Investment :  Min. of Transport :

Danish People's Party (Dansk Folkeparti) or DF [Pia KJAERSGAARD]; Liberal Alliance or LA []; Liberal Party () or V [Lars LOKKE RAMUSSEN]; Red-Green Alliance (Enhedslisten) Political parties and [collective leadership, spokesperson Johanne SCHMIDT-NIELSEN]; leaders Social (Socialdemokratiet) or SDP [Helle THORNING-SCHMIDT]; Social Liberal Party (Det Radicale Venstre) or SLP [Margrethe VESTAGER]; Socialist People's Party (Socialistisk Folkeparti) or SF [Villy SOVNDAL] Terminals Ports and Denmark Economy This thoroughly modern market economy features a high-tech

Characteristics agricultural sector, state-of-the-art industry with world-leading Chapter: Chapter:

3 firms in pharmaceuticals, maritime shipping and renewable energy, and a high dependence on foreign trade. Denmark is a member of the (EU); Danish legislation and regulations conform to EU standards on almost all issues. enjoy among the highest standards of living in the world and the Danish economy is characterized by extensive government welfare measures and an equitable distribution of income. Denmark is a net exporter of food and energy and enjoys a comfortable balance of payments surplus but depends on imports of raw materials for the manufacturing sector. Within the EU, Denmark is among the strongest supporters of trade liberalization. After a long consumption-driven upswing, Denmark's economy began slowing in 2007 with the end of a housing boom. Housing prices dropped markedly in 2008-09 and, following a short respite in 2010, continued to decline in 2011 though at a slower pace. The global financial crisis has exacerbated this cyclical slowdown through increased borrowing costs and lower export demand, consumer confidence, and investment. The global financial crises cut Danish real GDP by 0.8% in 2008 and 5.8% in 2009. Denmark made a modest recovery in 2010 with real GDP growth of 1.3%, in part because of increased government spending; however, the country experienced a technical in late 2010-early 2011. Historically low levels of unemployment rose sharply with the recession and have remained at about 6% in 2010-11, based on the national measure, about two-thirds average EU unemployment. An impending decline in the ratio of workers to retirees will be a major long-term issue. Denmark maintained a healthy budget surplus for many years up to 2008, but the budget balance swung into deficit in 2009. In spite of the deficits, the new coalition government plans to deliver a modest stimulus to the economy in 2012. Nonetheless, Denmark's fiscal position remains among the strongest in the EU at 46.5% of GDP in 2011. Despite previously meeting the criteria to join the European Economic and Monetary Union (EMU), so far Denmark has decided not to join, although the Danish remains pegged to the euro. Denmark held the EU presidency during the first half of 2012; priorities included promoting a responsible, dynamic, green, and safe Europe, while working to

steer Europe out of its euro zone economic crisis.

Denmark Economy Characteristics Economy Denmark Chapter: Chapter:

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The monetary-policy counterparties' aggregate accounts with in relation to are stated on Danmarks Nationalbank's balance sheet and are termed the "net position" vis-à-vis Danmarks Nationalbank.

Danmarks Nationalbank makes available two facilities that give the monetary-policy counterparties the opportunity to earn interest on their net position:

 Firstly, the counterparties have access to make current-account deposits with Danmarks Nationalbank within certain limits. The current account may not be overdrawn overnight. Current- account deposits accrue interest at the current-account rate.  Secondly, Danmarks Nationalbank conducts market operations whereby the counterparties can borrow or place funds, usually for 14 days. Danmarks Nationalbank conducts its market operations by purchasing and selling certificates of deposit or by lending against collateral in the form of securities. The lending rate is equal to the rate of interest for certificates of deposit, and usually there is no limit to the amounts that the counterparties may borrow or place.

The key liquidity concept in monetary policy is the counterparties' current-account deposits, since these funds can immediately be used as means of payment at the initiative of the account holders themselves. Current-account deposits are therefore often referred Bank and Moneter Policy to as "liquidity", "current-account liquidity" or "krone liquidity".

Overall, the monetary-policy counterparties do not have access to more liquidity than has been provided via Danmarks Nationalbank. The counterparties may trade liquidity with each other, but cannot themselves create liquidity.

Since the counterparties may not have overdrafts on their current accounts at the close of the day, Danmarks Nationalbank provides liquidity if all counterparties taken as one show a liquidity deficit. This might be necessary if Danmarks Nationalbank's sale of foreign exchange (and purchase of kroner), or the private sector's payments to the central government, lead to an aggregate liquidity deficit. Danmarks Nationalbank will always – via its market

operations – ensure that the aggregate current-account funds are sufficient to prevent overdrafts at the close of the day. On the other hand, if the total limit for current-account deposits is reached, Danmarks Nationalbank will issue certificates of deposit.

Danmarks Nationalbank conducts monetary policy by setting the monetary-policy interest rates, i.e. the discount rate, the current- account rate and the lending rate (equal to the rate of interest for

certificates of deposit). The interest rates are determined by the Policy Moneter and Bank Board of Governors of Danmarks Nationalbank, and can be changed

as required at any time. Chapter: Chapter:

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Danmarks Nationalbank's interest rates guide the short-term money-market interest rates in Denmark, cf. Chart 1.1. As a resultofthecompetition among the banks in the long term, changes to the banks' deposit and lending rates tend to match larger changes to the discount rate relatively closely, cf. Chart 1.2. This reflects that borrowing from Danmarks Nationalbank or via the money market constitutes a potential marginal source of financing for the individual bank. Fogh's vision for Danish foreign policy is not drastically different from the traditional foreign policy pursued by Denmark for many years. The Liberal Party is firmly engaged in the European Union (EU) and the North Atlantic Treaty Organization (NATO) and is a vocal supporter of the enlargement of both. Denmark is one of three countries in the EU that opted out of the currency harmonization scheme and so, along with Sweden and the United Kingdom, it has not adopted the euro , though it may join at some point in the future. Denmark has also opted not to join any EU- funded defense force. Fogh's government believes it is not in the best interests of Denmark to be nonparticipants in these areas but respects the Danish rejection by referendum. The Liberal Party officially would like Denmark to join the "" by adopting the euro as the country's currency, and also supports Danish participation in a common EU defense policy and the EU military International force. This will only happen if Danish voters elect to do so by organization referendum. Denmark, as one of the smaller countries within the participation EU, has fought recent moves within the body to provide the larger countries with a greater voice in EU decision-making as expansion continues.

As a member of NATO, Denmark was an immediate supporter of the U.S. War on Terror following the attacks on the United States in September 2001. Denmark contributed troops to the multinational peacekeeping force led by the United Kingdom in Afghanistan. Three Danish soldiers were killed in March 2002 as they tried to defuse an unexploded bomb. Fogh has also lined up behind the U.S.

president George W. Bush on the issue of Iraq. He is convinced that Saddam Hussein has weapons of mass destruction, and that he is prepared to use them. Fogh also wants to revise parts of a defense agreement with the United States and Greenland first reached in 1951.

Main Industry Wind Power, Shipping, Manufacturing

A. P. Moller-Maersk Group, FLSmidth, ISS, Carlsberg, Arla Foods, Biggest Company Novozymes, Vestas Wind Systems, Coloplast, Novo Nordisk, TDC

Referensi

http://www.nationalbanken.dk/C1256BE9004F6416/side/Monetary_Policy_in_Denmark/$file/kap02 participation organization International

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