Denmark has a modern, prosperous and developed mixed market economy, ranking 16th in the world in terms of GDP (PPP) per capita and 5th in nominal GDP per capita. A liberalization of import tariffs in 1797 marked the end of mercantilism and further liberalization in the 19th and the beginning of the 20th century established the Danish liberal tradition in international trade that was only to be broken by the 1930s. Property rights have enjoyed strong protection. Denmark's economy stands out as one of the most free in the Index of Economic Freedom and the Economic Freedom of the World. The economy has high levels of international trade and Denmark is known as a free trade advocate in the European Union. Denmark is one of the most competitive economies in the world according to World Economic Forum 2008 report, IMD and The Economist.
As a result of its acclaimed "flexicurity" model, Denmark has the most free labour market in Europe, according to the World Bank. Employers can hire and fire whenever they want (flexibility), and between jobs, unemployment compensation is very high (security). The World Bank ranks Denmark as the easiest place in Europe to do business. Establishing a business can be done in a matter of hours and at very low costs. Denmark has a competitive company tax rate of 25% and a special time limited tax regime for expatriates. The Danish taxation system is broad based, with a 25% VAT, in addition to excise taxes, income taxes and other fees. The overall tax burden (sum of all taxes, as a percentage of GDP) is estimated to be 46% in 2011.
Denmark has a labour force of about 2.9 million. Denmark has the fourth highest ratio of tertiary degree holders in the world. GDP per hour worked was the 13th highest in 2009. Denmark has the world's lowest level of income inequality, according to the World Bank Gini (%), and the world's highest minimum wage, according to the IMF. As of June 2010 the unemployment rate is at 7.4%, which is below the
