Daily Management Review

North Korea's economy hit by record in 23 years decline


North Korea's economy has experienced a record drop in 23 years. According to Yonhap, the country's GDP fell by 4.5 per cent in 2020. However, the calculations were carried out by South Korea's central bank, in the absence of such data from the DPRK itself.

According to the Bank of Korea's estimates, a combination of factors contributed to the decline. Firstly, bad weather conditions played their part. Secondly, the economy has been under pressure due to severe restrictions and border closures as a result of the coronavirus pandemic. In addition, UN sanctions also had a negative impact on GDP.

In early July, Lee Jong-joo, spokesman for South Korea's Ministry of Unification, reported that North Korea has economic problems amid the COVID-19 pandemic. The talk was about increased volatility in exchange rates and commodity prices.

North Korean leader Kim Jong-un himself spoke of a "great crisis" in the country because of the coronavirus. In his view, officials had "neglected to implement important decisions" that were supposed to ensure the "safety of the state and its citizens".

source: en.yna.co.kr