Denmark has a modern market economy with a high-tech agricultural sector and a state-of-the-art industry. The limited size of the domestic market urged Danish entrepreneurs to seek customers abroad. As a result, the economy of the country is highly export- oriented and the main products of exportation are food and energy. The Danish economy is also characterized by an extensive government welfare network, an equitable distribution of income, and a high standard of living. A significant feature that showcases the socio-economical responsibility of Denmark is that it devoted 0.82% of its gross national income in 2008 to foreign aid to less developed countries a fact that makes Denmark one of the few countries that are contributing more than the UN goal of 0.7 % of gross national income to aid.  
 
As it is already mentioned Denmark has an export oriented economy. The main products that the country is exporting are machinery, foodstuff, miscellaneous manufacture articles, chemical products and mineral fuels and lubricants.  The main exporting area is EU-27 markets which accounted for almost 70% of total commodity exports in 2008. Germany, Sweden and the United Kingdom alone account for almost 40% of Danish exports. Germany was the single most important market and accounts for almost 18% of all exported Danish goods.  The United States is Denmark's largest non-European trading partner, accounting for 4.4% of total Danish trade in 2008.

Like the rest of the world the country has been affected by the global economic crisis. Its trade had been significantly reduced. It is indicative that from the 2nd quarter of 2008 to the 2nd quarter of 2009, Danish exports were reduced by 22%. Of course this decline was a global phenomenon as during the same period international trade plummeted by as much as 33%.

Though, the economic recession of the country started earlier, in the first months of 2007, when after a long consumption-driven upswing, the economy of the country started to slow. The global economic recession further worsen this cyclical slowdown through increased borrowing costs, lower export demand and investment. Additionally, a significant diminish in the consumers’ confidence had been highlighted a fact that had as a result the contraction of private consumption. The national Gross Domestic Product (GDP) was declined by 0.9% in 2008 and 4.3% in 2009. Furthermore, unemployment rose sharply with the recession.
 
Despite the fact that Danish economy was heavily stroke by the global financial crisis, the public finances are “in good shape” to combat it. The last two decades the country’s macro-economic policy has focused on maintaining sound domestic finances and paying off foreign debt. This policy has succeeded in bringing down public debt from 68 % to 33% of GDP and diminishes Denmark’s foreign debt to negligence. The aforementioned macro-economic situation, combined with a highly skilled workforce, and one of the most developed infrastructures in the world, has allowed Denmark authorities to believe that the economic slowdown will be short.

Of course the economic slowdown was major and it will be significantly longer before the country reaches the same level of production as before the crisis. By the end of 2010 GDP in real terms is expected to be 3.7% lower than in the 2nd quarter of 2008. It is, therefore, likely that Denmark will have to enter 2012 or even 2013 before regaining what have been lost.