Economy

Denmark has one of the world's highest Standards of living. Manufacturing and services are the mainstays of the economy. Together they account for about 55 per cent of Denmark's gross domestic product. Agriculture, wholesale and retail trade, and a sizable merchant marine are also important.

Denmark relies heavily on foreign trade. Virtually all raw materials, most fuels, and many other goods must be imported. Exports consist mainly of manufactured goods and processed farm products. Trade is primarily within the European Union.

Most factories, farms, and businesses are small and privately owned. The government operates several public services, including the mail and most railways. There are extensive state welfare programs pertaining to such matters as health, unemployment, and old age.

Manufacturing employs nearly 20 per cent of the workforce and accounts for about 60 per cent of Denmark's exports. The most prominent industries are metalworking (whose chief products include industrial machinery and ships) and the food-and-beverage industry (processed meats and fish, dairy products, and beer). Also significant is the making of chemicals, pharmaceuticals, electrical and electronic equipment, furniture, textiles, ceramics, glassware, and silverware. The popularity of many Danish products is enhanced by a clean, unadorned style of design known as Danish Modern. The Copenhagen area, with about a fourth of the Danish population, is the chief manufacturing region. Odense has one of the largest, most modern shipyards in Europe.

Agriculture is intensive and highly specialized and centers on the production of livestock and livestock products. Most of the farmland is used for grazing and the growing of grain, root, and forage crops for feed. Virtually all farmers belong to cooperatives, which maintain the quality and uniformity of agricultural products and engage in marketing and research. Denmark is a major exporter of bacon, ham, pork, beef, butter, and cheese. Barley, used for food and feed and in making beer, is the most widely grown crop. Other crops include wheat, oats, sugar beets, rapeseed, and potatoes.

A seafaring tradition and rich fishing grounds nearby have helped make Denmark a prominent fishing nation. Fish is a common Danish food and a valuable export. Sand lance, sprat, pout, and cod are among the principal fish landed. Most of the major fishing ports are on the North Sea.

Petroleum and natural gas are the only minerals produced in large amounts. Oil and natural gas fields were first found in 1966 in the North Sea. Since then these and other fields in the North Sea have been extensively developed.

Denmark has an efficient railway system and a dense network of hard-surfaced roads. Ferries and several bridges link the islands and the mainland. There is also ferry service to Norway, Sweden, and Germany. Copenhagen is Denmark's leading seaport. Denmark, Sweden, and Norway jointly operate the Scandinavian Airlines System (SAS), a major international carrier. Denmark's principal airport and only international terminal is at Kastrup, near Copenhagen.