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Foreign direct investments (FDI) are crucial for Danish economy and growth

In the dynamic landscape of global investments, Denmark has marked its prominence with a noteworthy trend in both inbound and outbound investments. Over the past decade, Danish investors have progressively expanded their outbound investments climbing from DKK 915.7 billion in 2010 to a peak of DKK 1664.2 billion in 2022. Although 2022 witnessed a slight dip compared to 2021, the overarching trend showcases Denmark's robust economic strategy and confidence in international markets.
When 13.12.2023
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In tandem with this outward expansion, Denmark has also seen a steady rise in inbound investment, from DKK 539.6 billion in 2010 to DKK 925.8 billion in 2022, reflecting its mounting allure to global investors. This is further illustrated by the impactful presence of foreign companies in Denmark's economy. Although they represent just 3 percent of all companies in Denmark, they account for 21 percent of employment and 25 percent of total private sector revenue, showcasing the high productivity and economic contribution of foreign companies.

This dual growth trajectory is supported by substantial international investments from key global players. The United States leads with DKK 188.6 billion, underscoring a strong bilateral economic relationship. Nordic neighbours Sweden, Norway, and Finland also make significant contributions, with investments reflecting a tradition of regional economic integration and shared values.

On an industry level, the financial sector stands out with DKK 371.6 billion in investments, reinforcing Denmark's reputation as a financial hub. Non-controlling holding companies follow with DKK 260.4 billion, indicative of a strong preference for stable, passive investments. Business services and the industrial sector also report substantial investments of DKK 138.7 billion and DKK 122.3 billion, respectively, highlighting the demand for corporate services and manufacturing. Trade and transport also play a critical role, securing DKK 104.1 billion, emphasizing Denmark's logistical and trade significance.

In essence, Denmark's FDI landscape not only showcases its economic resilience and global confidence but also highlights the nation's strategic positioning as a hub for innovation, collaboration, and sustained economic growth.

Foreign direct investments (FDI) are crucial for Danish economy and growth
Source: Danish National bank

5 reason to why FDIs are Shaping Denmark's Economic Landscape

  • Global Collaboration: Foreign companies are finding Denmark to be an attractive destination for investment, fostering global collaboration and cross-cultural partnerships. Our open and inclusive business environment encourages innovation and diversity.

  • Job Creation: FDIs are significant contributors to job creation in Denmark. As foreign companies establish their presence in the country, they not only bring investments but also contribute to the local workforce, fostering economic resilience and sustainability.

  • Innovation Ecosystem: Denmark's innovation ecosystem is flourishing, driven in part by the influx of foreign investments. Collaboration between local and international entities sparks creativity, driving advancements in technology, research, and development.

  • Industry Diversification: FDIs contribute to the diversification of industries, strengthening Denmark's economic foundation. From technology and renewable energy to healthcare and manufacturing, foreign investments play a crucial role in shaping a robust and dynamic business landscape.

  • Long-Term Growth: The sustained inflow of foreign direct investments underscores the confidence that businesses have in Denmark's economic stability and growth potential. This long-term commitment bolsters the country's position as a premier destination for global business expansion.

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