Denmark

Market overview

Denmark is currently in lockdown to avoid the spread of COVID-19. Schools, kindergartens, nightclubs and all non-essential businesses are currently closed. However, the government began to ease lockdown measures after Easter in relation to schools, some workers and public transport.

Danish shopping malls, schools and restaurants will be allowed to reopen in the coming weeks. From 8 June, museums and cinemas will also reopen. The later phase of easing restrictions will begin in August, with night clubs and gyms reopening around then. You can read more about the controlled reopening of Denmark on the government webpage here.

The Danish Government has set up a website for current measures and up-to-date information on COVID-19 here.


Economy and trade

In April, Denmark's Finance Minister predicted that Denmark's GDP will fall by between 3 and 6 percent in 2020 as a result of the measures the government has taken to control the COVID-19 pandemic.

Deloitte has included information about consumer spending and a short-term outlook across selected sectors in Denmark in their Economics' Coronavirus Impact Monitor here.

Advice to exporters

In terms of immediate activity, make the safety and well-being of teams your priority, and invest as needed to ensure a safe and healthy working environment. Many businesses are still allowing employees to work from home where this is possible. Check in with your business partners and see how they are doing and how you might be able to support them during this time.

Business operations

Government and business response

The Danish Business Authority has created a Business Guide webpage (Danish language) for businesses to understand how to navigate COVID-19. This includes guidance on:

  • How to prevent COVID-19 in your company (here)

  • Business agreements and force majeure (here)

  • GDPR and COVID-19 (here)

It has also introduced a business hotline (+45 7220 0034).

Government support

Denmark has introduced a compensation package for businesses and citizens affected by COVID-19. Policies in the package include:

  • Wage Compensation – In order to retain employees, the Government will cover up to 75 percent of the wages of workers in the private sector (up to DKK 23,000 a month) who could lose their job due to COVID-19, and up to 90 percent of wages of hourly workers (up to DKK 26,000 a month). This will apply from 9 March to 9 June. You can read about this compensation package on the Danish business guide website here (Danish language).

    • The Government will also cover sick leave costs related to COVID-19.

    • Companies will have to apply to benefit from the scheme through the Danish Business Authority website.

  • Postponement of VAT and A-tax payments under a tax bill introduced on 16 March to help companies mitigate the financial consequences of COVID-19. More detail on which companies are eligible for postponed tax is available on the Danish Ministry of Taxation website here (in Danish).

  • SME expenses compensation – Small businesses that could lose 40 percent or more of revenue can get up to 80 percent of regular expenses (such as rent) covered by the Government. Businesses ordered to close will have 100 percent of regular expenses covered by the Government. The scheme has not opened yet but will apply from 9 March to 9 June – you can find more information on the compensation scheme here.

  • Guarantee scheme for new loans – the state will provide a guarantee of 70 percent for new bank loans to SMEs which have suffered or expected to suffer a revenue loss of at least 30 percent as a result of COVID-19. Larger businesses can obtain a state guarantee of 70 percent of a new bank loan to cover revenue loss due to COVID-19. These schemes are now open and are administered by Vaekstfonden (the Danish State's investment fund). More information is available here.

The Danish Business Authority has created a Business Guide webpage (Danish language) for businesses to understand how to navigate COVID-19. This includes guidance on:

  • How to prevent COVID-19 in your company (here)

  • Business agreements and force majeure (here)

  • GDPR and COVID-19 (here)

It has also introduced a business hotline (+45 7220 0034).

Consumer sentiment

McKinsey has carried out a survey on Danes during the COVID-19 crisis. The survey found that Danish consumers are concerned about the economy during the crisis, but do not expect the financial impact of the crisis to last too long.

  • Optimism from Danish consumers for a quick economic recovery is low. 15% think COVID-19 will have a long-lasting impact on the economy.

  • Danes are cutting back on their spending, but less than half of the respondents believe their finances will be impacted for more than two months because of COVID-19.

  • This has led to decreased spending expectations across all categories except grocery, food takeout & delivery and entertainment at home.

Travel

The Danish Government has implemented border controls at Denmark's borders from 10 May. Only those with a 'worthy purpose' such as working in Denmark will be able to enter.


Sector insights

As is to be expected, numerous sectors have been impacted by the COVID-19 pandemic. Below you'll find information on any COVID-19 effects across important sectors and industries in Denmark.

Food and beverage

The Danish food industry overall is not as impacted as other industries due to constant demand. However, the closure of restaurants and cafés has had a significant impact.

The Danish Food and Drink Federation is seeing changes in the demand from the general public with restaurants, cafés and the whole value chain connected to them being under most pressure and demand for products used for traditional cold lunch dishes, e.g. rye bread, increasing.

According to Deloitte, spending on restaurants is down by almost 80% whereas grocery spending appears to have stabilised at a level around 20% above spending levels last year.

While initiatives have been implemented in order to support the industry, discussions are underway about additional measures to help increase the demand for restaurants when Denmark opens up again, such as full VAT relief for restaurant visits.

The Danish Food Cluster provides insights and help on how to handle the coronavirus crisis here.

Additional resources

Below you can find information and contact details for other New Zealand government and international agencies regarding their response to COVID-19.

New Zealand Government agencies

Covid19.govt.nz
COVID-19 helpline for businesses
Business.govt.nz
New Zealand Customs
Ministry for Primary Industries (MPI)
New Zealand Export Credit (NZEC)
MFAT Export Helpline
MFAT Safetravel
Callaghan Innovation
Immigration
Ministry of Health
WorkSafe New Zealand

Global agencies

World Health Organization (WHO)
Centers for Disease Control and Prevention (CDC)

Contact NZTE

We're available to talk to you about any issues your export business is facing due to COVID-19.

For existing NZTE customers, please contact your New Zealand-based Customer Manager.

If you're unsure who to contact or haven't worked with us before, you can call NZTE on 0800 555 888 or email below and one of our Customer Advisors will help you.