Basic facts

Population: 5.6 mil.
Capital: Copenhagen 1.167.569 (2010)
Other major cities: Aarhus 237.551, Odense 158.163, Aalborg 100.873 (2010)
Form of state: Monarchy
Government: Coalition of the Liberals and the Conservatives, headed by the Liberals (Mr. Lars Løkke Rasmussen)
Member of: UN, OECD, EU, NATO, Schengen, OSCE, IMF, WTO and others.

Gross domestic product: 310.8 bn US$ (2010)
GDP growth: 2.1% (2010)
GDP pr. capita: 55,958 US$ (2010)
Low inflation: 2.1 (2010)
Low corporate taxation: 25% (2011)

External Trade

The limited size of the domestic market, has forced Danish manufacturing companies to become very export-oriented. A healthy trade balance has been one of the major features of Denmark’s recent economic development with Danish exports and imports accounting for an estimated 50.1% and 44.6% of GDP respectively in 2010. The EU-27 markets remain the most important trading zone accounting for around two-thirds of total commodity exports, and Denmark’s close neighbors continue to be, by far, the country’s most important customers. Germany is the single most important market and account for almost 18% of all exported Danish goods. However, trade with new markets in Central and Eastern Europe and in the Far East has increased in recent years and now account for a significant part of Danish exports.

Danish Business Activity in Russia

The bilateral trade between Denmark and Russia has increased in volume in recent years and continues to grow as more Danish companies decide to export and invest in Russia. Accordingly, the number of subsidiaries and representatives offices in Russia continues to increase and now counts more than 140 subsidiaries (2010).

Danish businesses are represented across almost all sectors in Russia, such as pharmaceuticals, agriculture and food, building and environment, IT, transportation, industrial equipment, and consultancy. Even though most companies have chosen to enter the Russian market via exports and/or a subsidiary, some Danish businesses have located production facilities in Russia, e.g. Rockwool, Grundfos, and Danfoss.

Regardless of entry mode, almost all Danish companies operating in the Russian market have improved their sales in the wake of the financial crisis.