Despite Sanctions, North Korea's Growth Rate Turns Positive After 3 Years... Foreign Trade Up 14.1%

'Estimated North Korea Economic Growth Rate in 2019'

[Asia Economy Reporter Jang Sehee] North Korea's economic growth rate last year is estimated to have increased by 0.4%. This marks a slight increase for the first time in three years since the 3.9% growth in 2016. This is due to the significant increase in the scale of foreign trade as the UN's economic sanctions against North Korea were not strengthened. North Korea's per capita national income last year was estimated at 1,488,000 won, which is about 1/27 of South Korea's level.

According to the "2019 North Korea Economic Growth Rate Estimation Results" announced by the Bank of Korea on the 31st, North Korea's real Gross Domestic Product (GDP) last year increased by 0.4% compared to the previous year.

The Bank of Korea stated, "The scale of foreign trade showed a significant increase, and the UN's economic sanctions against North Korea have not been strengthened since 2017." The UN had restricted imports of crude oil and refined oil and banned exports of agricultural products, seafood, machinery, and textiles in 2017.

North Korea's foreign trade volume last year was $3.24 billion, a 14.1% increase compared to the previous year ($2.84 billion). This excludes inter-Korean trade.

Exports first reached $280 million, a 14.4% increase compared to the previous year. Watches and parts (57.9%) and shoes, hats, and wigs (43.0%) increased. Imports also increased by 14.1% compared to the previous year to $2.97 billion, mainly in textile products (23.6%), plastics and rubber (21.3%), and vegetable products (29.2%).

Agriculture, forestry, and fisheries increased by 1.4% compared to the previous year (-1.8%) due to increases in agricultural and fishery products last year. Mining decreased by 0.7% as coal increased but metals and non-metals decreased. Manufacturing decreased by 1.1%, centered on heavy and chemical industries.

The Bank of Korea analyzed that although North Korea's growth rate slightly increased, it is premature to evaluate that the North Korean economy is fully recovering. The Bank of Korea said, "Although the scale of foreign trade showed a significant increase, it is still about half compared to the past from 2011 to 2016." It added, "Core industries such as mining and manufacturing are still negative," and "It is premature to say that the North Korean economy is fully recovering."

Meanwhile, North Korea's nominal Gross National Income (GNI) last year was 35.6 trillion won. This is about 1/54 (1.8%) of South Korea's level. Per capita GNI was 1,408,000 won, about 1/27 (3.8%) of South Korea's 37,435,000 won.

This content was produced with the assistance of AI translation services.