Successfully investing in Denmark

last updated on 17 July 2025 | reading time approx. 3 minutes

How do you assess the current economic situation in Denmark? »
How would you describe the investment climate in Denmark? Which sectors offer the largest potential? »
What challenges do German companies face during their business ventures into Denmark? »
Why are Danes ranked some of the happiest people in the world?»
In your opinion, how will Denmark develop?»

How do you assess the current economic situation in Denmark?

The Danish national bank, national economic council and the Danish government is highly optimistic for the Danish economy despite the turbulence related to the recent geopolitical events (Energy crisis, Inflation rise, War in Ukraine, NORD Stream conflict, Greenland controversy, Tariff event).

The national bank estimates a Real GDP growth at 0,2 percent throughout 2025, upward from previous estimates. The interest rates are adjusted as late as April 2025 with 0,25 points down to 1,85 as a consequence of ECB. The risk of persistently high inflation is considered low. The labor market is unaffected by recent events and still boasts a record employment with only a slight adjustment of higher unemployment in the range of the 23-25 years old. The Danish currency is still relatively solid compared to many other countries however, it faces old challenges in that the recent political discussion and tend to lean towards a national vote for the Euro.

How would you describe the investment climate in Denmark? Which sectors offer the largest potential?

In 2024, Denmark records its highest level of foreign investments while holding the same level from prior years in incoming investment. The main driving force has been pharmaceutical and medical companies investing in offices and production. Despite recent political uprisings, The USA accounts for the largest influx of investments due to their pharmaceutical business environment.

As Denmark is a rather small country, especially compared to its neighbors, the population is also quite heavily focused in the larger cities. Combined with our enthusiasm for digitalization and automation, the infrastructure in Denmark is very advanced, both tangible and in-tangible:

As a small country, Denmark’s public transport network is widely regarded as one of Europe’s best and most efficient. Transportation across country with Train and in cities with metros, busses and even on bike is possible due to separated roads, tracks etc.
Likewise, the challenge of widespread expansion of high-speed Internet makes it next to impossible to find spots where Data roaming is not possible.
Across both the private and public sector, administration costs are at a downward spiral due to the numerous companies who specialize in automation offering cloud-based programs which have the advantage of nullifying tedious, slow tasks while also lowering the error rate meanwhile. The grasp of digitalization makes Denmark a 99% non-reliant on “paper” based administration.
Geographically, Denmark location is perfect location for a Nordic based sales office or distribution center as it connects the Nordic region with one of the most essential economies in Europe.

All above strengths makes for easy, efficient investments in Denmark and almost all sectors have potential for expansion in Denmark.

What challenges do German companies face during their business ventures into Denmark?

Although the investment climate in Denmark is very appealing, German entrepreneurs still faces challenges when evaluating the decision to invest:

Denmark is widely regarded as one of the adamant first movers on EU directives translation into local laws. As such, many processes and decisions might not be possible despite being normal back in the home country.
Denmark sparks the “Nordic” approach to the labour market along the lines of both Norway and Sweden. Culturally, structure and hierarchy can be different from German which sometimes can make familiarisation and integration take longer time than anticipated.
Although one of the biggest strengths in Denmark, the digitalization of the country sometimes causes dilemmas to appear as companies not ready to adapt might face unforeseen ethical/procedural problems.

In addition, the “first mover” on EU directives can result in undesired slow-down of integration as companies have to adapt to more legislation than they might initially be aware of.

Why are Danes ranked some of the happiest people in the world?

The Scandinavian culture of trust binds the Danes tightly together. Relaxed and collective values are built on trust, security and cooperation alongside a deeply rooted humor. As per May 2025 the Danish capital; Copenhagen has been ranked the worlds happiest city (Institute for the Quality of Life - Happy City Index). Environmentally focused with its many green spaces, sustainability-based waste management and cultural resources. Work-life balance has captured the Danish workforce allowing leisure- & family time to thrive whilst building solid professional careers.

In your opinion, how will Denmark develop?

Based on the above, we see a continuous development in investments, economic growth and high social standards.

Denmark is expected to grow through innovation, green energy, and digital leadership. The country is attracting international investment in sectors like biotech, clean tech, and IT, supported by a stable economy, strong government strategies and a highly productive workforce. Denmark remains a safe harbor for investments, even during challenging times. The country consistently adapts to change, turning challenges into opportunities.

The country is positioning itself as a global hub for technology- and knowledge-intensive investments, with a strategic focus on sectors that support the green transition, digital innovation, and responsible business conduct. Denmark thus continues to offer strong potential for foreign investors.