Denmark is a small, open economy that is heavily dependent on foreign trade. Close to 50 per cent of Danish exports go to the euro member states. Thanks to market participants’ confidence in Danish economy in general and monetary and exchange-rate policies in particular, Denmark has not been affected by the increase in interest rates, seen in many euro area Member States.
In fact, it offered an external environment for Australia that has seldom been bettered. At home, the economy turned in a steady performance. Unemployment is lower than a year ago, confidence and profits are high, inflation contained.