DENMARK

Resilience to be tested

AA1

LOW RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD351,3bn (World ranking 37, World Bank 2018)
Population 5,8mn (World ranking 113, World Bank 2018)
Form of state Constitutional Monarchy
Head of government Mette Frederiksen (PM)
Next elections 2023, legislative
  • Strong banking sector
  • Strong business environment (flexible employment protection legislation, excellent infrastructure)
  • Diversified export sector, mainly in non-cyclical sectors
  • Healthy public finances
  • High institutional effectiveness
  • Highly skilled workforce
  • Excessive household debt
  • Elevated house valuations
  • Small and open economy
  • High exposure to the UK and Brexit
  • Loss of competitiveness, namely due to high tax burden

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Germany 15%
1
23% Germany
Miscellaneous 14%
2
13% Sweden
Sweden 11%
3
8% Netherlands
United States 7%
4
6% China
United Kingdom 6%
5
5% Norway

Trade structure by product

(% of total)

Exports Rank Imports
Pharmaceuticals 15%
1
5% Cars And Cycles
Meat 5%
2
5% Pharmaceuticals
Electrical Equipment 5%
3
4% Plastic Articles
Engines 4%
4
4% Refined Petroleum Products
Fats 3%
5
3% Electrical Apparatus
Payments take 7 to 30 days on average, but delays of approximately 12 days may be expected. The EU legal framework provides reliable tools when it comes to late payment matters.​

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

Courts are reliable and the system provides fast-track proceedings for undisputed claims below DKK 100,000. Delays and costs otherwise remain significant when a claim is disputed, and EU standard proceedings are not fully applicable in the country.

Although domestic insolvency law aims at rescuing companies to increase the chance of recovering debts, it provides no limitations as to how much of the debt may be written off in restructuration negotiations and it is rare for unsecured creditors to recover from insolvent debtors in practice.

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

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