Denmark's Economy is Booming Thanks to the US. Here's How _ Vantage with Palki Sharma

Safety is everything , whether you're buying a car or taking a medicine .

But in America , some drugs have turned into an obsession so much so that they're altering the economy of Denmark sounds complicated .

Let me explain how are drugs in America , altering the economy of Denmark ?

The drugs we are talking about are called Ozempic and now they're used to treat diabetes , but Americans are taking them to lose weight .

This is a , there's a big surge in this , in , in demand and it's benefiting just one company , Novo Nordisk .

This is a company that makes both the drugs , Ozempic and Vivi Novo Nordisk is a Danish company .

It was already Denmark's largest , but now this company has become bigger than Denmark's economy .

Noble Nordisk is valued at $413 billion .

And what is Denmark's GDP $406 billion .

So one company is bigger than the entire country's economy .

How did this happen ?

It happened .

Thanks to the unprecedented demand from America , the sales of these drugs are booming .

Doctors are prescribing them in growing numbers , diabetes patients were already taking them .

They still do .

But now there's a whole new customer base for these drugs .

It's made up of people seeking weight loss .

A study claimed that these drugs can help in weight loss and a new market opened , people started lining up for these diabetes drugs and this led to serious shortages in many places .

The medicines were out of stock , diabetes patients who needed the drugs were unable to get them and this led to panic .

It was good for the business though projections say the demand will remain high for the foreseeable future and this will push up the profit margins .

Novo Nordisk expects profits to grow by 37% .

This year .

In the first six months , the company raked in $7 billion in pure profit and even Denmark is benefiting from all of this .

The company is bringing more dollars to Denmark .

It sells the drug to America .

It earns payments in dollars these dollars and come to Denmark .

The company converts them into local currency .

It's called the Danish Croner .

And thanks to this trade , its value has improved dramatically .

The dollar inflow became so high that the Danish Bank had to step in .

It has lowered interest rates just to stabilize the currency and this has had a trickle down effect on other banks .

It's a good time to borrow in Denmark .

The central bank is keeping interest rates low which means cheaper home and car loans .

And remember all of this is happening .

Thanks to one company and two drugs , Novo Nordisk has fueled growth , economic growth improve Denmark's foreign reserves and cause the lowering of interest rates .

And there will be more ripple effects like the creation of new jobs .

Denmark , like I said , is benefiting from all of this .

Although it's not a new phenomenon for the Nordics , you may remember another such nokia .

It was a leading phone manufacturer and synonymous with Finland .

Before the smartphone era began buying a phone meant buying a nokia .

It was , there was a high demand for nokia phones .

At its peak .

In the year 2000 , nokia accounted for 4% of Finland's economy .

More than 1/5 of its exports and 70% .

70 70% of Finland's Stock exchange .

Nokia played a big role in Finland's growth from 1995 to 2007 .

Finland's GDP rose by 55% all because of Nokia's dominance in phones .

So Finland rode the success of Nokia for over a decade .

But the launch of the iphone changed everything .

Phones , iphones took over the market in the 2000 tens .

They ushered the smartphone era .

Nokia failed to catch up .

It did not innovate today .

All phones feature the touch screen that Apple pioneered and Nokia barely has any presence in this market .

So how did Nokia's fall impact Finland ?

Nokia's decline coincided with Finland's stagnation from 4% .

The company's share in Finland's GDP fell to 0.4% from four to 0.4 .

There were job cuts Finland's per capita income declined .

That's what happens when one company becomes bigger than an entire country .

It's a double edged sword when they thrive economic growth , skyrockets .

But when they fall , the consequences strike you with even greater force .

But for now , things are looking up for Denmark .

Do you know how many Americans are eligible to take the diabetes drug for weight loss ?

Almost 100 million .

These jabs are the latest health trend .

The health benefits are a subject of debate but their economic benefits for Denmark are not .