Insight

Denmark is the EU’s most competitive economy

Insight

Denmark is the EU’s most competitive economy

Denmark ranks as the most competitive economy in the European Union and sixth globally in the 2026 IMD World Competitiveness Yearbook. 

When

The result also places Denmark ahead of the other Nordic economies, underlining its position as an attractive European location for international companies seeking efficient infrastructure, strong institutions and a productive business environment.

Published by the International Institute for Management Development (IMD), the annual ranking assesses how effectively economies create and maintain conditions that enable businesses to compete.

Top 10 most competitive economies

Top 10 most competitive economies
Source: IMD World Competitiveness Yearbook 2026

Note: the graph shows each overall score on a scale from 0 to 100, based on its performance across the criteria included in the ranking.

Strong performance across key business factors

The ranking assesses economies across four main competitiveness factors: economic performance, government efficiency, business efficiency and infrastructure. These are divided into 20 sub-factors covering areas such as the labour market, business legislation, tax policy, education and technological infrastructure.

Denmark performs particularly strongly in several areas that matter to international companies. It ranks:

  • First in Productivity and Efficiency
  • First in Management Practices
  • Third in Technological Infrastructure

These results reflect a productive and well-managed corporate environment supported by advanced digital and physical infrastructure. Denmark also ranks second overall in both Business Efficiency and Infrastructure.

Denmark has consistently placed among the leading economies in recent editions of the ranking. It ranked fourth globally in 2025 and sixth in 2026. IMD points to weaker economic performance and persistently high operating costs as some of the factors affecting Denmark’s latest position. Nevertheless, its strong performance in business efficiency and infrastructure continues to support an attractive and dependable environment for international business.

Denmark’s ranking on subfactors in the IMD’s competitiveness ranking

Denmark’s ranking on subfactors in the IMD’s competitiveness ranking
Source: IMD World Competitiveness Yearbook 2026

Methodology and data:

The 2026 IMD World Competitiveness Ranking covers 70 economies. The overall results are calculated using 264 criteria, combining statistical data with the perceptions of business executives.

Statistical data account for two-thirds of the overall ranking and comprise 172 criteria. The remaining 92 criteria are based on responses to an executive survey conducted between February and April 2026 among approximately 6,900 respondents worldwide.

The criteria are grouped into four equally weighted factors:

  • Economic performance
  • Government efficiency
  • Business efficiency
  • Infrastructure

Each factor is divided into five sub-factors, resulting in 20 sub-factors in total. Each sub-factor carries a weight of 5 per cent in the overall ranking.

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Build your European business from Denmark

Denmark’s combination of efficient infrastructure, high productivity and strong management practices provides international companies with a competitive platform from which to operate and grow in Europe.

Are you considering Denmark for your next investment or European expansion? Contact Invest in Denmark to explore the opportunities and receive confidential, tailor-made guidance.

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