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Denmark - Research Paper Example

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The economy characteristically enjoys favorable balance of payments (surplus); the country exhibits features of a net exporter, mainly energy and food, and less…
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Download file to see previous pages It is a European Union (EU) member meaning that most of its regulations and legislation match standards of European Union.
The country exists along the strongest supporters of trade liberalization within the European Union. After an extended upswing driven by consumption, its economy started dawdling in the year 2007 accompanied with the ending of housing boom. In the years 2008 and 2009, the prices of houses significantly dropped, and have continued dilapidating. This decline has been worsened by the global financial crisis. The decline also increased the costs incurred in borrowing leading to decreased consumer confidence, reduced export demand and lesser investments (Country Economic Forecast, 2012).
Seventy five percent of the country’s Gross Domestic Product (GDP) is accounted for by the service industries. On the other hand, the agricultural sector records reducing results since the finish of World War II. These proportions of the sectors’ contribution are also portrayed in employment; agricultural sector accounts for 1.6%, services sector 73% and industrial sector 25%. The country’s labor force is extensively unionized where 70-75% of total workers associate with confederation of trade unions (COTU); the unions exhibit cooperative relationship with the economy’s employers. Similar to other Nordic nations, women’s employment and participation rates are high (Country Economic Forecast, 2012).
The country has a monarchy style of leadership; Queen Margrethe II being the state’s head. The country has high degree of accountability and transparency evidenced by the political institutions’ affairs satisfaction. It is considered to be among the least corrupt countries. Its corporate tax and VAT rates stand at 25%. The objective of the country’s central bank is inflation stabilization (Country Economic Forecast, 2012).
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