ECONOMY

The standard of living is generally high, with annual GDP per capita of US$30,000. Compared to most industrialized countries, Denmark retains a large and important agricultural sector, two-thirds of whose produce is exported. Danish manufacturing depends on imports of raw materials and components. Iron, steel and the production of other metals are the most important industries, followed by electronics, chemicals and biotechnology, paper and printing, textiles, furniture and cement. Food processing and drinks also make a significant contribution. Since the discovery of offshore oil and gas reserves in the 1980s, production has gradually increased to the point where the country can meet all its domestic energy needs. Most of Denmark’s trade is conducted within the EU, of which it is a member, although it has proved reluctant (in rather the same manner as the UK) to adopt measures which are perceived as threatening to its sovereignty. It has thus so far refused to join the single European currency zone. Recent economic performance has been steady: inflation (2 per cent) and unemployment (6 per cent) are near the EU average; in 2004, annual growth remained at 0 per cent. Germany is substantially the largest trading partner followed by Sweden and the UK; outside the EU, Norway and the USA are important trading partners. Denmark is a member of the Nordic Union. Its links with Scandinavia will be further enhanced by the new road and rail system linking it to Sweden across the Øresund Strait: this is one of Europe’s largest engineering infrastructure projects.