The ratings on the Kingdom of Denmark reflect policymakers' longstanding commitment to fiscal discipline, supporting the sovereign's substantial fiscal flexibility. The general government is expected to continue posting significant fiscal surpluses, equivalent to 1%-2% of GDP in the medium to long term. Since its peak at 81% of GDP in 1993, the general-government debt burden is expected to fall to an estimated 43% of GDP by year-end 2004 and is forecast to continue declining steadily in the medium term. The sustained decline in the public-debt burden, coupled with a robust pension system and efforts to boost labor-market participation, is expected to provide sufficient fiscal flexibility to meet the challenge of an aging population. Denmark's strong macroeconomic-policy record and its wealthy
