Source: Danmarks Nationalbank
The value of investments in Europe will make up 60 percent of total outward investments in 2023. This is a smaller share than 5 years ago, as Danish companies have invested heavily in the USA and Asia in recent years. The value of Danish investments in the USA was kr. 274 billion in 2023, which is almost twice the amount of 2018. The USA is the largest investment country, followed by Great Britain, Germany and Sweden.
The USA is the largest investor country in Denmark
Foreign direct investments in Denmark often pass through one or more transit countries before they reach Denmark. This is due, among other things, to complicated ownership structures, where investments from the country of origin are made via holding companies, often based in transit countries such as Luxembourg, the Netherlands and Ireland.
The complexity of the global organization of companies can make it difficult to identify where economic activity takes place and which countries ultimately bear the risk and get the return on the investment. Therefore, the investments are also compiled based on the ultimate investor country, where there is look through of ownership structures and the country from which the investments are controlled is identified. Based on this approach the USA is clearly the country that ultimately invests the most in Denmark, but Sweden and Great Britain are also major investor countries. Part of the foreign direct investment in Denmark also comes from Danish companies – known as round tripping. This occurs when Danish companies and foundations invest in Denmark through a foreign subsidiary.