Denmark economy at a glance

Latest figures for Denmark: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Denmark on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	2.2%	September 2026	2.0% August 2026
Core inflation (excluding food and energy)	1.9%	September 2026	2.2% August 2026
Real GDP growth (year on year)	5.6%	Q2 2026	6.4% Q1 2026
Policy rate (Danmarks Nationalbank)	2.10%	November 2026	2.10% October 2026
Unemployment rate	3.1%	September 2026	3.1% August 2026
10-year government bond yield	3.29%	September 2026	3.01% August 2026
Retail sales (year on year)	4.9%	September 2026	4.1% August 2026
Industrial production (year on year)	8.3%	August 2026	6.5% July 2026
Wages (year on year)	3.7%	Q2 2026	2.5% Q1 2026
House prices (year on year)	9.4%	Q2 2026	8.2% Q1 2026
Stock market (OMX Copenhagen 25 (OMXC25))	1,996	November 2026	+14.3% over 12 months

Questions and answers

What is the inflation rate in Denmark?

Denmark's annual inflation rate was 2.2% in September 2026, up from 2.0% in August 2026.

What is the interest rate in Denmark?

The Danmarks Nationalbank current-account rate; the krone is pegged to the euro under ERM II is 2.10% (as of November 2026).

How fast is Denmark's economy growing?

Denmark's real GDP grew 5.6% year on year in Q2 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 3.7% in 2026 and 2.0% in 2027.

What is the unemployment rate in Denmark?

Denmark's unemployment rate was 3.1% in September 2026, unchanged from August 2026.

What is Denmark's 10-year government bond yield?

Denmark's 10-year government bond yield averaged 3.29% in September 2026.

How much government debt does Denmark have?

Denmark's government debt is about 27.2% of GDP (latest annual figure), with a budget surplus of 2.9% of GDP.

What is Denmark's credit rating?

Denmark's sovereign credit ratings: S&P AAA, Moody's Aaa, Fitch AAA.

What is the VAT rate in Denmark?

Denmark's standard VAT rate is 25% (2026 rules).

What is the corporate tax rate in Denmark?

Denmark's corporate income tax rate is 22.0% (2026 rules).

Who leads Denmark?

Denmark is led by Mette Frederiksen (Social Democrats), Prime Minister; head of state King Frederik X. Next election: Next Folketing election due by March 2030 (four-year term from the 24 March 2026 snap election).

Outlook

Forecasters see another year of strong, export-led growth: Danske Bank (3 Sep) expects 4.0% in 2026 and 3.0% in 2027, and the IMF (Oct WEO) expects 3.7% and 2.0%, with inflation around 2–2.5%. Nationalbanken (23 Sep) expects inflation to run higher in the near term with upside risks, while public demand and rising real incomes support the home economy. The main downside risks are the heavy reliance on one pharmaceutical company and on output produced abroad, US trade policy, and a longer Gulf energy shock. ECB hikes, passed through by the peg, also raise mortgage costs. Upside comes from a tight labour market and the tax cuts planned for later years.

Why Denmark matters for the world economy

Denmark punches above its weight through a handful of global champions. Novo Nordisk's GLP-1 drugs make Danish pharmaceutical output and exports a swing factor for European industrial data. Shipping (Maersk) ties the country to global freight and to disruption around the Gulf and Red Sea, and wind turbines and offshore-wind developers matter for the energy transition. Its covered-bond market is one of the largest in Europe, and with the krone pegged to the euro, Nationalbanken simply passes ECB moves through to Danish borrowers. Germany, Sweden, the US, the Netherlands and Norway are the main export markets. The Greenland dispute keeps Denmark at the centre of US–Europe security tensions in the Arctic.

Politics

Frederiksen called a snap election for 24 March 2026, after the crisis over US designs on Greenland. Her Social Democrats fell to 38 seats, their weakest vote share in over a century, and neither bloc won a majority. After a centre-right attempt collapsed, she formed a four-party minority government on 2 June 2026 (Social Democrats, Green Left, Moderates, Social Liberals) that leans on the Red-Green Alliance and The Alternative. Finance Minister Peter Hummelgaard presented the 2027 finance bill on 9 October. It prioritises defence, targeting 3.5% of GDP by 2030, and sets aside money for later tax cuts. The bill still needs a majority in negotiations with other parties. Public finances are very strong (2025 surplus about 2.9% of GDP, debt about 28% of GDP), so the political risk is about priorities rather than solvency.

System: Unitary parliamentary constitutional monarchy.

Economy and taxes

GDP: US$463 billion
Population: 6.0 million
Government debt: 27.2% of GDP
Budget balance: 2.9% of GDP
Current account: 12.3% of GDP
Exports: 70.1% of GDP
Main exports: Pharmaceuticals (notably GLP-1 diabetes/obesity drugs), wind turbines and machinery, instruments, meat, dairy and fish, furniture; large sea-freight and other service exports
Top export markets: Germany (12.9%), Sweden (7.9%), United States (5.5%), Netherlands (5.4%), Norway (5.3%)
IMF growth forecast: 3.7% in 2026, 2.0% in 2027
IMF inflation forecast: 1.8% in 2026, 2.5% in 2027
Currency: DKK
Freelancer tax: A self-employed person earning the average wage (DKK 646,992 a year) pays about 36.4% of it in income tax and social contributions (2026 rules)
Top income tax rate: 60.5%
Gold reserves: 66.5 tonnes (September 2026)
Energy self-sufficiency: 61% (2024)

Recent news

4 November 2026 Greenland's parliament approves the security deal with the United States The Local Denmark
Greenland's parliament backed the security agreement with the US at its second reading, 16 votes to none with 7 abstentions. The deal allows two more US bases and reaffirms Danish sovereignty; the Danish parliament votes on it on 19 November.
3 November 2026 Government plans a cap on tax relief for mortgage and loan interest The Local Denmark
The government wants to limit the tax deduction for interest on bank and mortgage loans to the first DKK 150,000 a year; today there is no cap. A labour-movement think tank estimates it would raise just under DKK 1bn a year and hit about 1.2% of taxpayers, mostly wealthy people around Copenhagen.
30 October 2026 Danish unemployment stays at 2.7% for a seventh month Trading Economics
Statistics Denmark's net unemployment rate held at 2.7% in September, unchanged for seven straight months and at its highest level since September 2021.
29 October 2026 Nationalbanken keeps rates unchanged as the ECB holds Danmarks Nationalbank
Danmarks Nationalbank left its current-account rate at 2.10%, in place since 11 September, after the ECB kept its rates on hold on 29 October. Its 3 November release showed no currency intervention in October and FX reserves of DKK 685.8bn.
22 October 2026 Danish consumer confidence drops to -17.2 in October Statistics Denmark
Statistics Denmark's indicator fell from -13.7 in September as all five of its components weakened, led by gloomier views of Denmark's current and future economic situation. Higher energy prices and mortgage rates have been squeezing household budgets.
20 October 2026 Danish home sales slow as mortgage rates and energy bills rise The Local Denmark / Ritzau
Boligsiden data show 7,709 homes sold in September, 12% fewer than a year earlier, and apartment sales in Copenhagen down 23% so far this year. Economists point to fixed mortgage rates of about 4–5%, up from 3.5% in January, and higher energy costs.

Headlines and summaries are compiled daily from the linked reports with AI assistance.