The volume of trade between Ukraine and Denmark in 2020 amounted to $700.7 million*, showing a decrease of $89.7 million (-11.3%) compared to 2019.
Denmark is one of Ukraine’s 50 largest trading partners (33rd place) with trade between the two countries accounting for 0.59% of Ukraine’s total foreign trade. Denmark is Ukraine’s 40th largest partner in trade in goods (0.42%) and 15th in trade in services (1.6%).
Among the EU countries, Denmark ranks on these indicators 15th (total trade), 17th (trade in goods) and 8th (trade in services).
At the end of 2020, it became the 13th largest exporter of services from Ukraine (larger than all other Scandinavian countries combined) and ranks 19th in terms of imports of services to Ukraine (71.2% of Scandinavian imports to Ukraine).
Exports of services accounts for 46.7% of total exports to Denmark, which makes them an important element of trade and significantly differs from the average in Ukraine which is about 20%.
Exports of Ukrainian goods to Denmark in 2020 amounted to $216.9 million (14.8% down), exports of services – to $190.5 million (2.3% up). Total exports of goods and services to Denmark amounted to $407.4 million, showing a decrease of 7.6% compared to 2019.
Imports of goods from Denmark during this period amounted to $220.9 million (19.4% down), imports of services amounted to $72.3 million (3.8% down). Total imports from Denmark amounted to $293.3 million, showing a decrease of 16.1% compared to 2019.
The balance of bilateral trade between the two countries is positive for Ukraine. According to the results of 2020, it amounted to $114.2 million.
The main items of Ukrainian exports of goods to Denmark in 2020 were textiles (20.2%), furniture (19.8%), knitwear clothing (10.7%), equipment and appliances (7.7%), ferrous metals (6.8%), wood and wood products (5.9%). The share of these items totals 71.2% in the total structure of exports.
The following products showed significant increase in exports in 2020 taking into account the cost indicator: products made of non-precious metals (+85.5%), knitted fabrics (+27.2%), furniture (+23.9%), equipment and appliances (+23%), knitwear clothing (+ 11%), finished textiles (+ 10.7%).
Exports decreased significantly for fish and crustaceans (-15%), electrical machinery (-34.9%), ferrous metals (-36.2%) and products made of ferrous metals (-35%), dairy products and honey (-40%), natural and artificial fur (-57.7%), textiles for clothing (-64.9%).
The decline in exports of ferrous metals has been due to falling world prices for metallurgical products, the decline in exports of fur – with the temporary closure of the Danish mink industry. Also, exports of grain to Denmark have been decreasing over the past few years.
The structure of exports of services was dominated by services for processing of material resources (43.1%), services in the field of telecommunications and IT (28.2%), transport services (23.1%) and business services (5%). During 2020, there was a significant increase in services for repair and maintenance (+61.3%), insurance (+59.3%) and processing of material resources (+14.5%). The largest decrease, due to the Covid-19 pandemic, was shown by services related to travel (-76.5%), financial activities (-71.3%), as well as cultural and recreational services (-58.7%).
The basis of the structure of imports of goods from Denmark to Ukraine was determined by the supply of the following products: equipment and appliances (14.8%), pharmaceutical products (8.7%), meat and offal (8%), residues and waste from the food industry (7%), furniture (6%), electric cars (5.2%). As Danish imports to Ukraine are much more diversified, the share of these items is only 49.7% in the total import structure.
During 2020, a significant decrease in imports, taking into account the value indicator, was shown by electric machines (-82.1%), ferrous metals (-74.1%) and products made of ferrous metals (-71.4%), finished textile products (- 53.3%), means of land transport other than rail (-49.4%), knitted fabrics (-43.5%), soap and organic substances (20.5%), equipment and appliances (-18.2%), residues and waste from the food industry (-14.8%).
There was significantly increase in imports of tanning extracts (+12.7%), skins (+16.4%), alcoholic and non-alcoholic beverages (+19.4%), plastics and polymer materials (+19.7%), optical and photographic devices (+20.1%), dairy products and honey (+20.2%), furniture (+25.1%), products made of non-precious metals (+25.4%), paper and cardboard (+25.9% ), protein substances (+26.6%), footwear (+30.6%), seeds and fruits of oil plants (+32.1%), meat and fish products (+42.7%), live animals (+51.2%), special fabrics (+60.1%), chemical products (+62.2%), meat and offal (+382.3%), ships (an increase by 40 times).
In the structure of imports of services prevailed the following: transport services (48.7%), state and government services (28.7%), business services (8.4%), royalties (6.4%). During 2020, there was a significant reduction in imports of travel-related services (-64.9%), insurance services (-55%), repair and maintenance services (-48.4%), business services (-41.9%), services in the field of telecommunications and IT (-9.7%), state and government services (-8.9%). At the same time, there was a multiple growth in construction services (threefold) and services related to financial activities (by 17 times).
For three quarters of 2020, the Ukrainian economy received $14 million in the form of equity instruments, minus debt instruments (according to the National Bank of Ukraine).
At the beginning of the IV quarter of 2020, the total volume of direct investments from Denmark in the Ukrainian economy amounted to $223.5 million (0.45% of the total investment in Ukraine), consisting of $138.9 million of equity instruments and $84.6 million of debt instruments.
The main investment capital has been invested in the processing, mining and energy industries (31.9%), professional, scientific and technical activities (22%), transport, warehouse and postal activities (15%), wholesale and retail trade and maintenance (11.9%), agriculture, forestry and fisheries (10.1%).
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.