Strong growth in the Danish economy makes it an attractive destination for investors
The Danish economy is experiencing robust growth, with GDP expanding by 3% in 2024 and an expected growth rate of 2.9% in 2025, according to the Danish government’s economic forecast released on 5 December 2024.
This strong performance, coupled with excellent framework conditions for doing business, positions Denmark as a highly attractive location for foreign investors seeking to establish themselves or expand into the Nordic and European markets.
This strong performance, coupled with excellent framework conditions for doing business, positions Denmark as a highly attractive location for foreign investors seeking to establish themselves or expand into the Nordic and European markets.
GDP growth and forecast for the Danish economy
|
|
2024 |
2025f |
2026f |
|
% GDP growth (real) |
3.0 |
2.9 |
1.7 |
|
% Inflation rate |
1.5 |
1.9 |
1.7 |
|
Increase in employment |
26.000 |
5.000 |
-5.000 |
The Danish Ministry of Economy (f: forecasts)
In the OECD’s economic forecast for 2024, Denmark is expected to record the fifth-highest growth rate among all OECD members. And according to the European Commission’s forecast for 2024, Denmark will have the sixth-highest growth rate among European Union members (after Poland and Spain, Croatia, Cyprus and Malta).
Denmark’s economic success is built on a foundation of innovation, productivity, and sectoral excellence. Denmark is home to many world-leading companies, including Europe’s most valuable company (based on market cap). Industries with high growth potential are key contributors to the nation’s prosperity. For example, the pharmaceutical industry alone contributed for a significant portion of Denmark’s GDP growth in 2024, showcasing the strength of its knowledge-intensive sectors.
GDP growth (real) and forecast for the Danish economy
Productivity: A cornerstone of Denmark’s economy
After a sluggish development during the COVID years that brought widespread disruptions to normal business and investment practices, the Danish private sector has managed to increase its productivity considerably over the past years.
Productivity per hour worked in the private sector
The Danish economy is characterised by a high level of productivity, with a GDP per hour worked that is 6% above the United States and 33% above the European Union average, making it a perfect location for companies seeking to draw upon a highly motivated and skilled labour force.
GDP per hour worked, USD (2023)
Why Invest in Denmark?
Denmark is home to some of the world’s leading companies, including Europe’s most valuable enterprise by market capitalisation. It offers a business environment characterised by stability, transparency, and an unmatched quality of life, making it a strategic hub for companies looking to establish or expand operations in Europe.
With its high economic performance, skilled labour force, and commitment to sustainable growth, Denmark is not just a place to do business - it's a place to thrive.