Denmark Economy

With few natural resources at its disposal, Denmark has managed to build a diverse economy based on its manufacturing and agricultural sectors. Its nominal GDP is 32nd largest in the world valued at $333,238 million USD. It has the world's highest minimum wage—though no official wage is set by the government—and lowest level of income inequality according to the World Bank and maintains an average standard of living for its citizens compared to other nations in Europe.

The chief exports of Denmark are manufactured goods and agricultural products with fuels and chemicals accounting for 26% of its total export figures. Denmark is a net exporter of food and energy, advocating a liberal trade policy. Several U.S. companies are registered in Denmark in order to escape domestic tax rates even though Denmark has one of the highest overall taxation rates in the Western world.

An extensive welfare system provided to citizens of Denmark is supported by the world's highest taxation rate. Over 30% of employment in Denmark is considered to be public sector and a value added tax of 20% is added on to almost purchases of goods and services, including groceries. A progressive income tax in Denmark ranges from 42.9 to 63 percent and affects four of every ten full time employees.