Economic Co-operation
Trade relations with Italy [1]
Denmark’s openness towards foreign trade is of the utmost importance to the local economy. Over the past few years, Italy has assumed an increasingly significant position and is now no. 7 on the list of Denmark’s supplier countries and no. 8 on the list of purchasers of Danish goods. In the first three quarters of 2004, Denmark’s 10 largest import and export countries were as follows:
Suppliers of goods to Denmark and purchasers of Danish export Market shares of the most important trade partners
| Suppliers of goods to Denmark |
Share of import 2003 |
Share of import 2004 |
Buyers of Danish goods |
Share of export 2003 |
Share of export 2004 |
| Germany |
22,8% |
22,1% |
Germany |
19,7 |
17,8% |
| Sweden |
13,0% |
13,4% |
Sweden |
12,7 |
13,1% |
| Netherlands |
6,9% |
6,9% |
UK |
8,3 |
8,6% |
| UK |
7,9% |
6,1% |
USA |
6,0 |
5,7% |
| France |
4,8% |
4,7% |
Netherlands |
4,7 |
5,7% |
| Norway |
4,4% |
4,6% |
Norway |
5,6 |
5,5% |
| Italy |
4,1% |
4,2% |
France |
5,1 |
5,0% |
| USA |
3,2% |
3,5% |
Italy |
3,4 |
3,4% |
| Belgium |
3,6% |
3,4% |
Spain |
3,4 |
3,3% |
| Finland |
2,3% |
2,2% |
Finland |
3,1 |
3,0% |
Source: Danmarks Statistik (December 2004). Estimate on the basis of the figures for January – September 2004.
The first nine months of 2004 show a considerable increase in bilateral trade compared to the same period in 2003, with a significant rise in Danish export to Italy (+8,7%) and in Denmark’s import from Italy (+7,9%).
Trade with Italy (million DKK).
| |
2002 |
2003 |
2004
(Jan.-Sept.) |
2004
(Jan.-Sept.) |
Variation
02/01 |
Variation
03/02 |
Variat. (Jan.- Sept.) 04/03 |
| Danish import from Italy |
16.38,6 |
15.219,0 |
11.370,7 |
12.270,9 |
1,7% |
-7,1% |
7,9% |
| Danish export to Italy |
14.135,0 |
14.619,9 |
10.547,1 |
11.468,1 |
-1,6% |
3,4% |
8,7% |
| Danish balance |
-2252,6 |
-599,1 |
-823,6 |
-802,8 |
28,3% |
-73,4% |
-2,5% |
| Total trade |
30.522,6 |
29.838,9 |
21.917,8 |
23.739,0 |
0,1% |
-2,2% |
8,3% |
Exchange rate
€: DKK |
7,43 |
7,43 |
7,43 |
7,43 |
|
|
|
Source: Danmarks Statistik (December 2004)
Already in the period from January to September 2004, the total trade, which in 2003 amounted to approx. 4 billion Euro, reached 3,2 billion Euro with a growth rate of +8,3% compared to the same period the previous year.
The trade balance between the two countries has traditionally been in Italy’s favour – contrary to Denmark’s trade balance with the rest of the world – although the tendency has been receding for the past two years: 108 million Euro in 2004 (first 9 months of the year), 81 million Euro in 2003 and 304 million Euro in 2002.
Italy has also experienced a slight increase in the commerce with Denmark which has risen to 0,8% of Italy’s total foreign trade.
Importance of the trade with Denmark for Italy’s total foreign trade (data from Istat)
| |
2000 |
2001 |
2002 |
2003 |
2004
(Jan.-Sept.) |
| Export to Denmark compared to Italy’s total export |
0,7% |
0,7% |
0,7% |
0,7% |
0,8% |
| Import from Denmark compared to Italy’s total import |
0,8% |
0,8% |
0,8% |
0,9% |
0,7% |
Source: Danmarks Statistik (January 2005)
Denmark’s trade with Italy: primary import and export articles in 2004 (Jan. – Sept.)
|
Import from Italy |
Export to Italy |
| 1. Industrial machinery and appliances |
1. Meat and products based on meat |
| 2. Clothing and accessories |
2. Preserved fish and products based on fish |
| 3. Automobiles |
3. Pharmaceutical and chemical products |
| 4. Electrical machinery and appliances |
4. Office machines |
| 5. Machinery and appliances for the specialised industry |
5. Electrical machinery and appliances |
Source: Danmarks Nationalbank (December 2004)
Quite a few Italian companies have permanent operations in Denmark and make a significant contribution to Italian export. Among these are ANSALDO (Ansaldo Trasporti Sistemi Ferroviari and Ansaldo Breda), FIAT, ALITALIA and SNAMPROGETTI. Further, Italian companies specialised in consumer goods have over the years taken root in Denmark with their own distribution centres, showrooms and retail stores. Among these are Zanussi, Ferrero, Segafredo, the Natuzzi Group, Gucci, Max Mara, Giorgetti, Molteni, Flos, iGuzzini og Artemide. For years Italian banks have not been represented on the Danish market.
The Danish companies operating in Italy are relatively few, mainly large groups such as A.P. Møller – Mærsk, Danish Crown, Danisco, Carlsberg, Lego.
The tendency reflected by the trade balance between the two countries repeats itself in the balance of bilateral investments, in as far as Italian investments in Denmark are constantly at a higher, although somewhat irregular level compared to the dropping Danish investments in Italy.
Direct investments in the two countries (million €)
|
2001 |
2002 |
2003 |
2004
(Jan.-Sept.) |
| Italian investments in Denmark |
735,8 |
684,0 |
655,5 |
607,0 |
| Danish investments in Italy |
595,0 |
524,8 |
497,2 |
488,8 |
| Exchange rate (1€ = DKK) |
7,45 |
7,43 |
7,43 |
7,44 |
Source: Danmarks Nationalbank (December 2004)
After a drop in Danish investments in Italy of –11,8% in 2002 and –5,2% in 2003 and a similar drop in Italian investments in Denmark of –7,0% in 2002 and –4,2% in 2003, the preliminary figures for January-September 2004 finally indicate a rising trend compared to the same period in 2003.
In fact, Italian investments in Denmark have reached 607 million Euro (compared to a total of 655,5 million Euro in 2003) while the Danish investments in Italy of 488,8 million Euro have almost reached the total level of investments in 2003 (497,2 million Euro).
Finally, another important aspect of the bilateral economic relations is the Danish tourism in Italy, which is experiencing a constant rise of 10% a year in terms of visits (more than 2,5 million units in 2003).
[1] Consolidated data until September 2004.
legals
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credits | F.A.Q.