economic situation evaluation on denmark
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WELCOME
Economic Situation Evaluation on
DENMARK
The Country - Denmark
• ‘The Kingdom of Denmark’• Total Area: 43075 square kilometers• Capital: Copenhagen• Bordered by: Sweden, Germany, Norway• Official Language: Danish• Official Currency: Danish Krone
Economy - mostly relies on the human resourcesIndustries - depend on the raw materials imported from the
other countriesFollows a liberal policy of tradeSeptember for liget (The September Settlement) in 1899 No minimum wage for the workers or employees decided by the govt. The United States - largest trade partner of Denmark outside
Europe - accounts for around 5% of total Danish merchandise trade
The Country - Denmark
Findings
Growing GDP will increase the purchasing power of the people
GDP
2006 2007 2008 2009 2010 2011 2012192.00194.00196.00198.00200.00202.00204.00206.00208.00210.00
GDP
GDP (perchasing power parity)
In 2009 and 2010. Denmark experienced Budget Deficit for the first time in recent history.
Budget
2006 2007 2008 2009 2010
-1.00
-0.50
0.00
0.50
1.00
1.50
Budget Deficit
Budget Deficit
• 55.3% of GDP in 2010 is collected from taxes and other receipts
• Budget surplus in 2010 - Tax collection and other revenues are more than the outlays
• Forecast - More budget surplus in the following year if goes increasing
Tax & Revenue
Net Export (+) = money inflow(+) & local currency value (+)Net Export (-) = money inflow (-) & local currency value (-)
Net Import (+) = money expenditure (+) & local currency value (-)Net Import (-) = money expenditure (-) & local currency value (+)
Net Export & Net Import
2006 2007 2008 2009 2010 2011 2012
-12.00-10.00
-8.00-6.00-4.00-2.000.002.004.006.00
Net Export
Net Export
2006 2007 2008 2009 2010 2011 2012
-15.00
-10.00
-5.00
0.00
5.00
10.00
Net Import
Net Import
Trade Deficit = Export (-) & Import (+)Trade Surplus = Export (+) & Import (-)*Dependent on foreign exchange rate
Trade Balance
2006 2007 2008 2009 2010 2011 20120.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Trade balance
Trade balance
Positive net sales abroad = current account surplus negative net sales abroad = current account deficit.
Current Account Balance
20062007
20082009
20102011
20120.00
1.00
2.00
3.00
4.00
5.00
6.00
Current account balance
Export & Import Partners
17.60%
13.80%8.10%
5.90%
5.60%
4.80%
4.70%
Export Partners
Germany Sewden UK US Norway Netherlands France 21.10%
13.70%
7.30%
6.80%
6.10%
5.50%
Import Partners
Germany Sweden NetherlandsChina UK Norway
Cyclical Adjusted & Structural Budget Balance
Cyclical Adjusted Budget Balance - better measures the stance of fiscal policy, removing the endogenous components of spending and revenues
Structural Budget Balance - declining is responsible for huge budget deficit and undeveloped structural budget
2006 2007 2008 2009 2010 2011 2012
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
Cyclical adjusted budget balance
Cyclical adjusted budget balance
2006 2007 2008 2009 2010 2011 2012
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
Structural budget balance
Structural budget balance
Nominal GDP (+) & Real GDP (-) = GDP Deflator (+)And Vice versa
GDP Deflator
2006 2007 2008 2009 2010 2011 20120.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
GDP deflator
GDP deflator
2.50% 20.20%
77.30%
Agriculture IndustryServices
Labor Force by Occupation
High unemployment rate of 2009 & 2010 - Unemployed suffered a loss in their standard of living, personal distress and sometimes life
time deterioration in their career opportunities
Employment & Unemployment
2006 2007 2008 2009 2010 2011 2012
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
Employment
Employment2006 2007 2008 2009 2010 2011 2012
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Unemployment
Unemployment rate
Stock of FDI at Home- December 2009 - $139.7 billion December 2010 – $139.7 billion
Stock of FDI in Abroad – December 2009 - $180.1 billion. December 2010 - $183 billion.
Stock of FDI- at Home & Abroad
Inflation Rate in 2010: 2.30Inflation Rate in 2009: 1.30
The residents of Denmark loose their purchasing power in 2010 than to 2009
Inflation Rate
Net lending - extra amount provided in lending purposes Net borrowing - amount of money that is required to finance
Net Borrowing and Net Lending
2006 2007 2008 2009 2010 2011 20120.00
1.00
2.00
3.00
4.00
5.00
6.00
Net lending(+) or borrowing (-)
