The ratings on the Kingdom of Denmark reflect its formidable track record of robust macroeconomic policies and structural reform. Years of prudent fiscal policies--sustaining general government surpluses and a declining debt burden--underpin Denmark's low inflation and stable currency. A general government budget surplus of 2.8% of GDP is forecast for 2001, with further surpluses averaging 2.7% of GDP over the medium term. The general government accounts have remained in surplus for the past four years, and over the past decade, have recorded an average deficit of just 0.8% of GDP (compared with a 'AAA' median deficit of 1.5%). Although the tax burden remains second only to Sweden among OECD countries, it remains underpinned by an efficient public sector and the
