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The Economy of Korea, North

Korean Economy

Korea, North's map

Economy - overview: North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and shortages of spare parts. Large-scale military spending draws off resources needed for investment and civilian consumption. Industrial and power output have declined in parallel from pre-1990 levels. Severe flooding in the summer of 2007 aggravated chronic food shortages caused by on-going systemic problems including a lack of arable land, collective farming practices, and persistent shortages of tractors and fuel. Large-scale international food aid deliveries have allowed the people of North Korea to escape widespread starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Since 2002, the government has allowed private "farmers' markets" to begin selling a wider range of goods. It also permitted some private farming - on an experimental basis - in an effort to boost agricultural output. In October 2005, the government tried to reverse some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. By December 2005, the government terminated most international humanitarian assistance operations in North Korea (calling instead for developmental assistance only) and restricted the activities of remaining international and non-governmental aid organizations such as the World Food Program. External food aid now comes primarily from China and South Korea in the form of grants and long-term concessional loans. In May 2008, the US agreed to give 500,000 metric tons of food to North Korea via the World Food Program and US nongovernmental organizations; Pyongyang began receiving these shipments in mid-2008. During the October 2007 summit, South Korea also agreed to develop some of North Korea's infrastructure, natural resources, and light industry, but inter-Korean economic cooperation slowed in 2008 as Pyongyang restricted tourism and manufacturing joint ventures in the North, and food aid from South Korea was suspended. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations.

GDP:

GDP - real growth rate: -2.3% (2008 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 23.3% industry: 43.1% services: 33.6% (2002 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%

Distribution of family income - Gini index:

Inflation rate (consumer prices):

Labor force: 20 million note: estimates vary widely (2004 est.)

Labor force - by occupation: agriculture: 37% industry and services: 63% (2004 est.)

Unemployment rate: NA%

Budget: revenues: $2.88 billion expenditures: $2.98 billion (2005)

Industries: military products; machine building, electric power, chemicals; mining (coal, iron ore, limestone, magnesite, graphite, copper, zinc, lead, and precious metals), metallurgy; textiles, food processing; tourism

Industrial production growth rate: NA%

Electricity - production: 21.72 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 18.18 billion kWh (2006 est.)

Electricity - exports: 0 kWh (2007 est.)

Electricity - imports: 0 kWh (2007 est.)

Oil - production: 141 bbl/day (2007 est.)

Oil - consumption: 24,000 bbl/day (2006 est.)

Oil - exports: 0 bbl/day (2006)

Oil - imports: 10,520 bbl/day (2007 est.)

Oil - proved reserves: NA bbl

Natural gas - production: 0 cu m (2007 est.)

Natural gas - consumption: 0 cu m (2007 est.)

Natural gas - exports: 0 cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 0 cu m (1 January 2007)

Agriculture - products: rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs

Exports: $1.684 billion f.o.b. (2007)

Exports - commodities: minerals, metallurgical products, manufactures (including armaments), textiles, agricultural and fishery products

Exports - partners: South Korea 45%, China 35%, Thailand 5% (2007)

Imports: $3.055 billion c.i.f. (2007)

Imports - commodities: petroleum, coking coal, machinery and equipment, textiles, grain

Imports - partners: China 27%, South Korea 16%, Thailand 9%, Russia 7% (2006)

Debt - external: $12.5 billion (2001 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: North Korean won (KPW) per US dollar - 140 (2007), 141 (2006), 170 (December 2004), market rate: North Korean won per US dollar - 3,400 (October 2008)

Fiscal year: