Denmark's Central Government Debt (% of GDP), 1990-2022

Denmark’s government debt saw a consistent reduction from its 1993 high of 78.39%, driven by robust fiscal management and economic growth. By 2007, debt levels were at an impressive low of 27.07%. However, the 2008 global financial crisis caused a temporary reversal, with debt increasing to 36.44% in 2009.

The subsequent recovery was rapid due to Denmark's strong economic fundamentals, bringing the debt ratio back down to 26.5% by 2019. Pandemic-related expenditures in 2020 pushed the debt up to 34.7%, but fiscal discipline quickly reduced it to 23.1% in 2022, marking one of the lowest debt ratios among developed economies.