Quoting from The Nation:
“North Korea had a little boost this year, due largely to its farm, mine and electricity and gas sectors,” the Hyundai Research Institute (HRI) said in its 2009 report on the communist nation’s economy.
North Korea’s farm production increased by 7.5 per cent, from 4.01 million tonnes in 2007 to 4.31 million tonnes forecast for 2008, according to South Korea’s Rural Development Administration (RDA).
“This year, North Korea’s weather conditions have enabled modest harvest growth,” said Ha Un-Gu, a researcher at RDA.
The delivery of energy aid from the United States, China and Russia was cited by the HRI report as a boost for North Korea’s gas and electricity sectors.
In 2008, North Korean trade with China has grown at a pace strong enough to offset its shrinking trade with Thailand. “So North Korea is forecast to post a record trade volume of 3 billion US dollars in 2008,” the HRI said.
However, North Korea’s 2012 target is becoming elusive, as the country’s trade volume is forecast to slide back from its peak of 3 billion dollars in 2008.
Liquidity problems of key trading partners China and Thailand will make it hard for them to maintain their economic ties with North Korea.
North Korea’s business ties with China were forecast to undergo a particularly steep decline, the HRI said.
North Korea’s trade volume with China increased by 25 per cent to 1.19 billion dollars during the January to June period in 2008, compared to same period in 2007, according to Shin Jeong-Seung, the South Korean ambassador to China.
Download the study (PDF in Korean) here.
Read the full article here:
North Korea’s economy is forecast to resume its slide
The Nation
12/27/2008
