Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Danish productivity and competitiveness in a globalised world
Danish companies participate in the international division of labour with significant production abroad under Danish ownership, along with products being produced by foreign subsidiaries. There are indications that these activities are largely made possible by the position of strength of the Danish companies and that part of the profits from foreign activities cover the cost of employees and intellectual property rights in Denmark. Overall, there are indications of good productivity and competitiveness in manufacturing, but these trends are best illustrated at industry level and there are industries where things look weaker.
Key messages
Why is it important?
In recent years, the scope of Danish companies' activities abroad has increased significantly. Understanding the impact of these activities on current account, productivity and competitiveness is crucial for assessing the Danish economy.
Main chart
Good productivity growth in Danish manufacturing overall
Note:
The chart shows real GVA per hour. For Denmark, revenue from merchanting has been added to Statistics Denmark's figures for manufacturing, as Statistics Denmark (unlike foreign statistical agencies) include merchanting in trading activities. The Danish figures then become comparable with those of other countries.
Source:
OECD, Bureau of Economic Analysis and Statistics Sweden.