Copenhagen dominates Denmark's economy, concentrating 31% of the country's population and 40% of its GDP in 2016. Its wealth measured by GDP per capita remained among the highest in Western Europe in 2016 (21% above London's), despite subdued improvement in 2011-2016 (an increase of 0.7% in real terms). Labour productivity deteriorated by 4.6% in the same period in the city (only Milan and Rome performed worse in Western Europe).
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Copenhagen remained among the 10 most productive European cities in 2016: each employee generated USD110,000 on average, 6.1% more than the leading financial centre London and 31% more than the rest of Denmark. However, labour productivity in the city deteriorated by 4.6% in 2011-2016, compared with an increase of 4.7% in the rest of the country. In Western Europe, worse productivity performances were found only in the Italian cities of Milan and Rome.
Due to greater labour productivity, average household disposable income was higher in Copenhagen than in the remaining Danish regions (15% higher in 2016). Compared with 31% higher labour productivity, the city's productivity premium was moderate. There was also a slightly higher labour force participation rate in Copenhagen (86%) than in the rest of Denmark (81%) in 2016.
The higher disposable incomes in the capital city helped households achieve a 19% advantage in spending (excluding housing and transport) compared with the rest of the country in 2016. The food and non-alcoholic drinks budget consumed the same portion of the total: 11% in Copenhagen and elsewhere in Denmark. The most notable proportional deviations in expenditure came in education and clothing and footwear, with households in the capital outspending their counterparts in the rest of the country by 51% and 36%, respectively, in 2016.
Combined household expenditure on housing and transport was 14% greater in Copenhagen than in the rest of the country in 2016. However, housing and transport remained affordable given Copenhagen's 15% higher average disposable income. The city is known for its low dependency on cars and a strong cycling tradition, which helps to drive down transport costs (8.8% lower than the rest of country in 2016). Yet housing prices are rising fast in the capital amid low interest rates, leading to 24% higher housing costs than elsewhere in Denmark in 2016.