The big neighbouring country south of the Danish border is by many Danish companies considered as an attractive, extended part of the domestic market. Germany is Europe’s largest economy and the fourth largest economy worldwide. The country has more than 80 million potential consumers with a high level of income. Germany is characterized by a highly developed and export oriented industry, easy market access, and cultural similarity with Denmark.
Germany’s economy is doing well. The country has emerged from the global economic crisis relatively unharmed compared to other European economies. The economy has likewise shown to be stable throughout the current international tensions and generally uncertain economic climate in the Eurozone. This can be seen in Germany’s growth figures. In 2014 Germany’s GDP rose with a total of 1.5 %, the highest growth rate since 2011. The high growth rates are partly due to strong exports and high domestic demand caused by increasing wages and low unemployment. These factors are expected to contribute to a positive growth in 2015. The German government expects 1.5 % growth in 2015.
Germany is by far the largest market for Danish exports. In 2013 Danish companies exported for a total amount of 103 billion DKK. This all-high level in export was an increase in export by 10.6 % compared to 2012. When adding services the total exports reached close to 140 billion DKK. Danish exports to Germany are divided among a number of sectors. Food, energy, machinery, and industrial products are the main export sectors.
Tourism is another important sector as Germany is the largest outbound tourism market in the world. The Danish presence in Top 10 of German's favourite destination places Denmark in front of countries like Greece and Portugal.
However, as the fourth largest economy in the world and the biggest in Europe, the German market holds much more potential for Danish companies. Despite the current high exports Germany has an unexploited export potential. A closer look at the numbers shows that the Danish export to Germany only comprises approximately 1300 DKK pro German, whereas Danish export to Sweden accounts for approximately 8000 DKK pro Swede.
The Northern federal states hold a large commercial potential and a well-developed industrial production. For many small- and medium sized companies this part of Germany can be seen as an obvious starting point for business with Germany. This is reflected in the exports statistics. Thus, Danish exports to e.g. the northern federal state Schleswig-Holstein amounts to approximately 7000-8000 DKK pro capita.
Unfortunately, many Danish companies tend to overlook the southern parts of the country where the residents have a considerably higher disposable income than the northern parts. In this relation Baden-Württemberg and Bavaria are worth mentioning as two of wealthiest German federal states. At present, Danish exports to Bavaria only amounts to 500 DKK pro capita.
Trends in the German society and among consumers in Germany match Danish strongholds and solutions. The royal visit and the business delegation will target these areas of common interest and focus on high potential opportunities within the following sector themes: