DPRK economy shrinks for second year: Bank of Korea
North Korea does not publish economic data. The size of North Korea’s economy is estimated by South Korea’s Central Bank (Bank of Korea), the US Central Intelligence Agency (CIA), and other think tanks such as the Sejong Institute (Lee Jong Seok).
According to a recent report by the Bank of Korea, North Korea sufferd its second full year of economic contraction (as defined by GDP), 1.1% in 2006 and 2.3% in 2007. The bank estimates North Korea’s 2007 gross national income (GNI/GNP) at $26.7 billion, per capita GNP at $1,152 (assuming population of 23 million). If you are interested in knowing the difference between GNP and GDP, click here.
Here are some highlights from the report:
Agriculture, forestry & fisheries marked a 9.4% decrease following a 2.6% decrease in 2006
Mining increased 0.4% in 2007, down from 1.9% increase in 2006
Manufacturing increased 0.8%, higher than 0.4% 2006 increase. -1.7% growth in light industry, due to the decrease in food products and beverages. +2.3% growth in heavy industries led by expansion of metal and machinery products.
Electricity, gas & water production increased 4.8%, (+2.7% in 2006), from hydroelectric and steam power generation.
Construction production -1.5%, (-11.5% in 2006), from reduced non-housing construction and civil engineering.
Services +1.7%, (+1.1% in 2006). Hotel, restaurant, transport, post & telecom industry expanded.
Trade volume (goods) fell 1.8% to $2.941 billion, 1/248 South Korea’s. Exports fell 3.0%, imports fell 1.3%.
These estimates are based on trade figures obtained from the Korea International Trade Association, Korea Trade and Investment Promotion Agency, fuel and food aid figures from aid groups such as the International Red Cross and the World Food Program, as well as information provided by frequent visitors.
More information here:
Full report by Bank of Korea and data (recomended)
North Korea’s Economy Shrank in 2007, Second Annual Contraction
Bloomberg
Heejin Koo
6/17/2008
