ng low inflation and a current
account surplus. In the face of recent international market pressure on the
Danish krone, the coalition has also vowed to maintain a stable currency.
The coalition hopes to lower marginal income taxes while maintaining overall
tax revenues; boost industrial competitiveness through labor market and tax
reforms and increased research and development funds; and improve welfare
services for the neediest while cutting paperwork and delays. Prime Minister
RASMUSSEN's reforms will focus on adapting Denmark to EC's economic and
monetary union (EMU) criteria by 1999, although Copenhagen won from the EC
the right to opt out of the EMU if a national referendum rejects it. Denmark
is, in fact, one of the few EC countries likely to fit into the EMU on time.
Denmark is weathering the current worldwide slump better than many West
European countries. As the EC's single market (formally established on 1
January 1993) gets underway, Danish economic growth is expected to pickup to
around 2% in 1993. Expected Danish approval of the Maastricht treaty on EC
political and economic union in May 1993 would almost certainly reverse the
drop in investment, further boosting growth. The current account surplus
remains strong as limitations on wage increases and low inflation - expected
to be around 1% in 1993 - improve export competitiveness. Although
unemployment is high, it remains stable compared to most European countries.
National product:
GDP - purchasing power equivalent - $94.2 billion (1992)
National product real growth rate:
1% (1992)
National product per capita:
$18,200 (1992)
Inflation rate (consumer prices): 1.5% (1992)
Unemployment rate:
11.4% (1992)
Budget:
revenues $48.8 billion; expenditures $55.3 billion, including capital
expenditures of $NA (1992)
Exports:
$37.3 billion (f.o.b., 1992)
commodities:
meat and meat products, dairy products, transport equipment (shipbuilding),
fish, chemicals, industrial machinery
partners:
EC 54.3% (Germany 23.6%, UK 10.1%, France 5.7%), Sweden 10.5%, Norway 5.8%,
US 4.9%, Japan 3.6% (1992)
Imports:
$30.3 billion (c.i.f., 1992)
commodities:
petroleum, machinery and equipment, chemicals, grain and foodstuffs,
textiles, paper
partners:
EC 53.4% (Germany 23.1%, UK 8.2%, France 5.6%), Sweden 10.8%, Norway 5.4%,
US 5.7%, Japan 4.1% (1992)
External debt:
$40 billion (1992 est.)
Industr