Globalisation complicates current account interpretation

Analysis - February 2018 - No. 2

Authors Kramp, Paul Lassenius; Mortensen, Anne Ulstrup; Jørgensen, Casper Winther Nguyen
Subject Danish Economy; Balance of payments! foreign trade and external debt; Balance of payments
Type Analysis
Year 2018
Published 7 February 2018
The analysis examines how globalisation can affect Denmark's current account. Globalisation implies that goods sold abroad by Danish firms to an increasing extent are completely or partially produced abroad. This complicates the interpretation of the developments in imports, exports, investment income and GDP, because they can be affected by the location of firms' head office and internal accounting structure.