ORESUND REGION

Denmark is located in northern Europe bordering Germany, Sweden and Norway. The Kingdom of Denmark also includes the overseas territories of Greenland and the Faroe Islands.

Denmark is a constitutional monarchy with a history of political and social stability. The Danish Parliament - "Folketinget" - consists of one chamber with 179 members. Prime Minister Poul Nyrup Rasmussen (Social Democrat) has led coalition governments with centrist parties since January 1993. The central government and administration resides in the capital city of Copenhagen. Denmark supports free trade and has been an active member of the European Union since 1973.

Area	43,094 sq. km
Population (1996)	5.2 million
Capital city	Copenhagen (1.3 million)
Density of population	121 per sq. km
Currency	Danish Krone (DKK)
1 USD (Average 1997)	DKK 6.60
1 ECU (Average 1997)	DKK 7.46

Sources: Statistics Denmark: Statistisk Årbog 1997 and the National Bank of Denmark.

Denmark has one of the strongest economies in Europe, characterized bya balanced state budget, stable currency and low interest rates as well as low inflation.The attractiveness of the Danish business environment has been consistently documented in the World Competitiveness Report published by the IMD/World Economic Forum. According to this and other research institutions, Denmark is perceived as one of the top ten trading and economic countries in the world.

Key Economic Figures

GDP 1996, at current prices	USD 175.1 billion
GDP per capita	USD 33,250
Total GDP output by industry:
Raw materials	1%
Energy supply	2%
Agriculture	4%
Construction	5%
Manufacturing	19%
Services	69%
Annual growth in GDP	2.7%
Trade balance (% of GDP)	+3.8%
Inflation	2.1 %
Interest rates , long-term (average 1997)	6.26 %
Corporate taxation	34 %
GDP Labour force	2.8 million
Whereof females	46.0 %
Unemployment rate (january 1998)	7.4 %
Workforce (share by sector):
Agriculture	5 %
Manufacturing	27 %
Business services	36 %
Public services	32 %

Sources: Statistics Denmark: Statistisk Årbog 1997 and Statistisk tiårsoversigt 1997. National Bank of Denmark: Beretning og regnskab 1996.The Economist, march 1998

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Traditionally, farming was the main element of Denmark's economy and Denmark is a significant producer of high-quality agricultural and fishing products, with 70% of the total production consumed overseas. Since the 1950s, industry and services have become the dominant sectors and manufacturing accounts for approximately 80% of the country's total exports today. Danish industry is, in general, composed of smaller and medium-sized, highly specialized companies with a strong ability to adapt to changing market demands and with a flair for strict product-quality control. Denmark has a reputation for being among the world's foremost producers of such diverse products as furniture and design, medical goods and devices, automatic cooling and heating devices,sensitive measuring instruments and windmills.

In the new, enlarged Europe, Denmark has emerged as a geographical center, holding a preeminent position and gateway to Northern and Eastern Europe. Denmark's location in Europe's most prosperous region and the membership of the European Union afford unhindered access to a total EU market of 350 million people and a further 200 million to the east.

Furthermore, Denmark and Sweden are in the process of being linked by one of the world's largest bridges to be concluded by the year 2000. The link will create a unified market with 3 million consumers within a radius of 50 km. The bridge will bring important growth to the Copenhagen area and consolidate Denmark's strategic role as a gateway for access to Scandinavian and Eastern European and Baltic region.

Denmark's leading position in Northern Europe is based on close economic, political and cultural ties to the bordering countries in Scandinavia as well as the Baltic region. Denmark has historic ties to the Baltic region and is perceived as being politically neutral while being much concerned with the economic and political development in the region. Denmark was the first country to establish diplomatic relations with the Baltic countries Estonia, Latvia and Lithuania in 1991. Since then, it has been a priority for Denmark to establish closer relations and create a fundament for economic development and political stability in the region. Danish assistance to Eastern Europe is targeted at environmental protection, private sector development, and support to development of the public sector and civil society. As part of the program, Danish companies can take advantage of export credits, loans, and investment guarantees, in their activities in the region.

The opening of the markets in Eastern Europe and the reforms undertaken in those countries have facilitated a significant growth in Danish trade with and investments in the region, in particular Poland, Russia and the Baltic region (Poland, Russia, Latvia, Lithuania, and Estonia). As a result, Danish exports to Eastern Europe has increased significantly. In 1992, the value of total Danish exports to Eastern Europe were 5,935 million, in 1997, the figure had increased almost to 15 billion DKK Danish exports and investments especially concentrate in the Baltic region, which receive 45% of total Danish exports to Central and Eastern Europe. In the period from 1993 to 1996, Danish companies have invested a total of 14.9 billion DKK in the Baltic region. 490 Danish companies have established 17,000 jobs in the Baltic region and many joint ventures between Danish companies and Eastern European companies have been formed.

The Danish business environment is characterized by efficiency, ease and straightforwardness. Bureaucracy is minimal in the public administration and improper practices, such as bribing or corruption do not prevail in the public sphere.

Government involvement in enterprises is very low in Denmark and the trend is towards further privatization, such as in energy production and telecommunication There are no special regulations or legal measures to control or prevent foreign ownership in Denmark and cross-border ventures with Danish companies can be negotiated freely.Access to local capital markets is not restricted for foreign companies, credit is easily obtained and the cost of capital is very competitive.

Foreign direct investment in Denmark takes the form of strategic alliances and partnerships, mergers and acquisitions and to a less extent, greenfield investments. Approximately 1,200 foreign-owned companies have established affiliates in the region. A growing number of foreign companies are setting up their distribution bases in Denmark and expanding their operations from Copenhagen to wider areas in Scandinavia and northeastern Europe.

Facts about Denmark