The Danish government aims to boost export to emerging economies by 50% within the next five years. The priority is China market which represents a huge domestic market and the strong presence of Danish companies and manufacturers.
The export strategy came as the economies of Brazil, Russia, India and China (BRIC) are expected to outpace the G7 rich country group by as early as 2025.
“We are shifting our export focus, so that it is not only on our near markets, but also on the BRIC countries,” said Danish Trade Minister Pia Olsen Dyhr after the launch of the strategy at the Danish Parliament on Wednesday.
The strategy seeks to boost exports, build trade cooperation, attract foreign direct investment and create jobs in Denmark, within the context of emerging markets.
It also calls for emerging economies to invest twice as much in Denmark as they have already done between 2005 and 2010.
Overall, exports comprise some 50 percent of Denmark’s gross domestic product (GDP), with the export sector responsible for creating over 700,000 jobs for Danish.
However, just 7.3 percent of Denmark’s total exports went to the BRIC countries in 2011, while 63 percent went to near markets in Europe, according to Danish trade ministry data.
“Beyond 2015, up to two-thirds of growth in Danish exports will take place in ‘distant markets’,” said Dyhr.
Thus, while Danish exports to China in 2011 were worth 15.1 billion kroner (around $2.7 billion), their value could rise by 20 percent in 2012 alone, the trade ministry said.
According to the report, the value of Danish exports to emerging markets will reach 90 billion Danish kroner ($15 billion), up from a current 60 billion kroner ($10.5 billion).
Denmark also wants to leverage its strength in agricultural exports and allied food industries, which constitute 20 percent of Denmark’s total exports.
The Danish government as allocated an additional 50 million Danish Kroner ($8.7 million) for export promotion activities in 2012-2013.
