Trade between Ukraine and Denmark has been gradually increasing since 2016. A certain decrease was recorded only in 2020, which was caused by the impact of the pandemic of coronavirus disease.
The total volume of trade between Ukraine and Denmark in 2021 amounted to $902.3 million*, showing an increase of $201.7 million (+28.8%) compared to 2020. The volume of trade with the entire Kingdom of Denmark which also includes the autonomous territories of Greenland and the Faroe Islands amounted to $931.3 million during this time.
By the end of the previous year, Denmark is among top 50 trade partners of Ukraine. It takes 34th place in terms of the volume of foreign trade with Ukraine. The share of Ukrainian-Danish trade in the total volume of foreign trade of Ukraine is 0.57%.
Denmark is Ukraine′s 43rd largest partner in trade in goods (0.42%) and 19th largest partner in trade in services (1.49%). Among 28 EU countries, Denmark ranks 17th in terms of trade in goods with Ukraine (1.06%) and 10th in terms of trade in services (4.03%).
In terms of exports, by the end of 2021, Denmark became the 16th largest exporter of services from Ukraine (larger than all other Scandinavian countries combined) and the 46th largest exporter of goods. Exports of services accounts for 44.5% of total Ukrainian exports to Denmark, which makes them an important element of trade and significantly differs from the average indicator for Ukraine which is about 20%.
Exports of Ukrainian goods to Denmark in 2021 amounted to $285.8 million (increase by 31.8%), exports of services – $229.2 million (increase by 20.3%). Total exports of goods and services to Denmark amounted to $515 million, showing a growth of 26.4% compared to 2020.
In terms of imports, by the end of 2021, Denmark became the 21st largest importer of services to Ukraine, second only to Sweden from the Scandinavian countries (20th place), and the 34th largest importer of goods placing behind Sweden, Norway and Finland.
Imports of goods from Denmark during this period amounted to $305.3 million (increase by 38.2%), imports of services amounted to $82 million (increase by 13.5%). Total imports from Denmark amounted to $387.3 million, showing a growth of 32.1% compared to 2020.
The bilateral trade balance between two countries is positive for Ukraine. By the end of 2021, it amounted to $127.7 million
The main items of Ukrainian exports of goods to Denmark in 2021 were furniture (22.6%), textile products (19.3%), clothing (11.2%), appliances (9.0%), wood and its products (5.2%), mineral fuels, oil and products of its refinery (5.1%). The share of these items accounts for 72.4% in the total structure of exports.
The following products showed significant increase in exports in 2021 taking into account the value indicator: mineral fuels (+176.4%), appliances (+55.1%), furniture (+50.3%), clothing (+36.9%), textiles (+25.8%), wood (+16%). Meat exports to the Faroe Islands also increased (+121.5%). A significant decrease in the exports of natural and artificial fur (–46%) and ferrous metals (–56.4%) continued.
The structure of exports of services was dominated by services for the processing of material resources (45.1%), services in the field of telecommunications and IT (27.7%), transport services (21.1%) and business services (5.5%).
During 2021, there was significant growth in public and government services (+5716.7%), travel related services (+125.7%), cultural and recreational services (116.5%) and insurance services (+82.2%). Services related to financial activities showed a decrease (–73.9%).
The basis of the imports of goods from Denmark to Ukraine was determined by the supply of the following products: appliances (13.1%), meat and offal (13%), pharmaceutical products (11.9%), food industry residues (6.6%), furniture (5.6%), electric machines (4.8%). Due to the fact that Danish imports to Ukraine are much more diversified, the share of these items in total is only 55% in the total structure of imports.
During 2021, fish and crustaceans (–29.5%) and live animals (–21.5%) showed a significant decrease in imports, taking into account the value indicator. The imports of fish and crustaceans from the Faroe Islands also decreased (–11.7%).
The imports of ferrous metal products (+192.8%), meat and edible co-products (+124.2%), means of land transport other than railway (+103.2%), pharmaceutical products (+88.4%), plastics and polymer materials (+ 64%), food industry residues (+29.5%) significantly increased.
In the structure of imports of services, transport services (57%), state and state services (22.1%), business services (9.2%), and telecommunications and IT services (4%) dominated.
During 2021, there was a significant decrease in the imports of services related to the use of intellectual property (–46.7%) and state and government services (–33%). At the same time, there was an increase in transport services (+29.5%), travel related services (+30.7%), telecommunications and IT services (+39.8%).
In 2021, according to the National Bank of Ukraine, $45.6 million came to the economy of Ukraine from Denmark in the form of equity instruments and debt instruments, of which the amount of reinvested income amounted to $38.7 million. This is almost 3 times more than in 2020.
The total volume of direct investments from Denmark in the economy of Ukraine at the beginning of 2022 amounted to $342.8 million (0.53% of the total volume of investments in Ukraine), consisting of $267.7 million of equity instruments and $75 million of debt tools
The main investment capital is invested in agriculture, forestry and fishing (26.8%), processing industry (23.2%), wholesale and retail trade and repair (20.5%), professional, scientific and technical activities (17.2%).
Investments from Ukraine in the Danish economy have not been registered to date.
* Hereinafter the data of the State Statistics Service of Ukraine are given, unless otherwise indicated. These data do not take into account the temporarily occupied territory of the Autonomous Republic of Crimea, the city of Sevastopol and parts of the temporarily occupied territories in Donetsk and Luhansk regions.
All amounts expressed in U.S. dollars unless otherwise noted.