Danish growth opportunities in Russia
Despite a major decline in 2009, the average annual growth rates in Russia have been at an impressive 5.5% over the past ten years. The result has been tangible growth in Danish investment in Russia. Exports have increased in the same period, but Denmark has lost ground compared with other Baltic Sea countries.
If Danish exports had followed the levels of the Baltic Sea region in the past ten years, they would currently have been DKK 3.2 billion higher. Technical trade barriers are the greatest obstacle for increased exports to the large near-market. Danish companies are losing market shares.
Even though Denmark has increased its exports to Russia by an average 10.6% annually over the past decade, Denmark ranks second lowest among countries in the Baltic Sea region with regard to having benefitted from the increasing demand from the East. If Denmark had kept up with the level of the Baltic Sea region, exports would be DKK 3.2 billion higher.
Russia is currently Denmark’s 14th largest export market. In 2009, Russia imported Danish goods and services to the tune of DKK 8.3 billion corresponding to nearly 2% of total Danish exports.
