Denmark booms – UK bust ?

Denmark's economy is booming. New growth figures from Statistics Denmark, shows economic growth is at its highest level in a decade led by sales of purchases of clothes, cars, and home and recreational products.

GNP expanded 4.3 percent in the second quarter of 2005, compared to the second quarter of 2004, the highest recorded increase early 1995.

Danish Exports grew 4.1 percent year-on-year (eg Carlsberg now runs 13 breweries in China), and 8.6 % in the first half of 2005 compared with the first half of 2004 .. which contrasts with new figures from UK National Statistics that the UK's deficit in goods and services trade with the rest of the world jumped to an all-time high of £5.34bn in August, from an upwardly-revised £3.94bn in July.

UK trade in oil plummeted from a surplus of £40m in July to a deficit of £413m in August - Oil exports slumped from £1.84bn in July to £1.59bn in August – reflecting the decline in oil and gas extraction during the month of August of 8%. Imports of oil ratcheted up again from £1.8bn to £2bn. The US$/£ rate shows how the market reacted.
“Currency Focus: Sterling Tests 11-Month Low” is today’s Yahoo FX Headline
The Danish retailers organisation Dansk Handel & Service (DG&S), says more than half of its members have had a better year this year than last. 'The growth rate is a result of the marked growth at the end of 2004, which was especially strong for durable goods,' said DH&S chief economist Jan Poulsen. 'Private spending continues on a reasonable track. If anything should endanger the sustainability of growth, it would be a lack of workers.'

Which is reflected in a report from the Ministry of Science, Technology, and Innovation found that 60 % of foreign students were still in Denmark one year after they received their degree. The national daily Berlingske Tidende reports that young people who come to Denmark to study for advanced degrees in engineering, medicine, and theology wind up liking the country so much that they end up staying.

Minister of Science and Technology Helge Sander was pleased with the development, and saw it as a way to supplement Denmark's native work force.

'We want to hang on to even more highly qualified foreign students,' said Sander. 'For just that reason, we decided this year to give recently graduated foreigners in certain fields a three month extension to their visa so they can look for a job.'

The ministry's report resulted from a survey of 1200 foreign students that completed a degree programme between 1992 and 2002.

So the UK imports potato pickers for the fields and order pickers for the gleaming new warehouses and distribution centres stuffed full of goods from low cost countries, whilst Denmark imports the brightest and best technicians, engineers and scientists.