Socialist state run economies are almost universally inefficient.
Scandinavians always claim to be the exception yet are gradually dismantling their systems.
Speaking of Denmark, one strength I think is that high wages and relatively low house prices in comparison to Denmark mean that the is a large consumer base. It also means that there is very high unemployment insurance, which in turn is good for stability and means the freedom to hire and fire is rather more easy going. I suspect the high wages also mean that employers focus on getting more out per hour.
Many of these advantages were also present in the USA in the C20th.