Danish economy, trade and industry
In many respects, the Danish economy is world-class. For the fourth time,Forbes Magazine has rolled out its annual Best Countries for Business ranking. And for the second straight year Denmark has taken the No.1 spot. In 2008, the Economist Intelligence Unit nominated Denmark as having the world's best economic climate for foreign investors, and Denmark is also among the highest placed countries in several other international comparison tables.
Danish public finances are in good shape to combat the current economic slowdown. Since the early 90’s, the macro-economic policy has focused on maintaining sound domestic finances and paying off foreign debt. The policy has succeeded in bringing down public debt from 68 per cent to 33 per cent of GDP over a period of 25 years, and Denmark’s foreign debt has been reduced to negligence. Combined with a very low unemployment rate, a highly skilled workforce, and one of the most developed infrastructures in the world, this has allowed Denmark to face the global financial crisis with confidence.
The slow-down in economic activity in late 2008 and early 2009 has been rapid and pronounced, and it will most likely result in a contraction of GDP in 2009 of around 3 per cent with an ensuing deficiton public finances. However, the healthy public finances, the low level of foreign debt, and the flexible labour force ensure political and financial freedom to pursue an effective counter- cyclical macroeconomic policy.

Industry structure
The Danish industry structure is characterised by many small and medium-sized companies, with only a few very large companies. However, and contrary to the general assumption, the percentage of small companies in Denmark is no greater than the European average. An industry structure of this kind, naturally, has both advantages and disadvantages.
The relatively large number of medium-sized companies gives Danish trade and industry greater flexibility and the ability to adapt quickly to new or altered market conditions. On the other hand, the fact that there are relatively few large companies means that average productivity is lower, as the value increment per employee in large companies is typically greater than in small companies.

Labour market
The Danish labour market is one of the most flexible in Europe and it has in recent years been praised for its combination of flexibility and security, known under the term Flexicurity. This allows companies to adjust the number of employees according to market demands, while at the same time ensuring that workers are quickly retrained and rarely remain unemployed for long. Industrial relations are highly organised and there is a tradition for consensus decisions. Major disputes and strikes in the labour market are very rare.
Denmark has a highly skilled and well-educated workforce that contributes substantially to the high productivity of Danish trade and industry. A large, well-organised educational system ensures that skills and productivity are continuously improved and adapted to the needs of companies. Denmark also has competitive labour cost levels. At face value, labour costs in Denmark may look significantly higher than in other countries. However, considering total labour costs – that is employers' total expenses, both wages and non-wages – Denmark comes out competitively. This is possible because employers only carry a low cost burden in terms of social security, labour taxes, etc.
Competitive labour costs and high productivity levels combine to make the Danish workforce one of the most cost-effective in Europe. This is further accentuated by the Danes' approach to work, which is typically characterised by values such as efficiency, company loyalty, motivation, self-reliance and creativity.

Industrial policy
The Danish industry structure, with relatively few large companies and a highly qualified workforce with great professional and geographic mobility, has made it easier for Denmark to pursue a targeted industrial policy aiming at improving the general framework conditions for trade and industry, without having to resort in any significant manner to selective industry grants. Other things being equal, this has led to a faster and more effective structural development of both agriculture and industry, crowding out less competitive farms and companies that have to yield to more competitive ones. The associated social challenges have been tackled through a well-developed social policy and an effective labour market system.
Danish trade and industry are, in other words, among the world leaders in several areas, and the economy as such remains one of the most competitive in the world.