North Korea's Economy Shrinks for 2nd Year... South-North Income Gap '28 Times'

Statistics Korea Releases '2022 North Korea Key Statistical Indicators'

[Asia Economy Sejong=Reporter Lee Jun-hyung] North Korea's economy has reportedly contracted for the second consecutive year due to the impact of COVID-19. The gap in Gross National Income (GNI) per capita between South and North Korea has widened to 28 times.

According to the '2022 Key Statistical Indicators of North Korea' released by Statistics Korea on the 26th, North Korea's real Gross Domestic Product (GDP) decreased by 0.1% compared to the previous year. North Korea's real GDP also declined by 4.5% in 2020 compared to the previous year. This contrasts with the global economic growth rate, which shrank by 3.3% in 2020 when COVID-19 spread, but rebounded to 5.8% last year. South Korea's economic growth rate also recorded -0.7% in 2020 but bounced back to 4.1% last year.

The reason behind North Korea's economy shrinking for two consecutive years is interpreted as the impact of COVID-19. Statistics Korea views that North Korea's economy, which was adversely affected by sanctions, took a direct hit after implementing border closure policies following COVID-19. As a result, North Korea's key economic sectors, mining and manufacturing and services, shrank by 6.5% and 0.4% respectively compared to the previous year.

The nominal GDP, which indicates the size of North Korea's economy, was estimated at 35.9 trillion won. This is only 1.7% of South Korea's nominal GDP of 2,071.7 trillion won last year. The economic gap between South and North Korea widened from 35 times in 2001, twenty years ago, to 58 times last year.

The income gap is also steadily widening. North Korea's per capita GNI last year was 1.423 million won, a 3.2% increase from the previous year. However, compared to South Korea's per capita GNI of 40.482 million won, it is only one twenty-eighth. Last year, North Korea's per capita GNI was 1.379 million won, which was one twenty-seventh of South Korea's 37.766 million won.

Excluding inter-Korean trade, North Korea's total trade volume last year was 710 million dollars, a 17.3% decrease from the previous year. This is only 0.1% of South Korea's trade volume of 1.2595 trillion dollars. Specifically, North Korea's exports and imports last year were 80 million dollars (-8.2%) and 630 million dollars (-18.4%), respectively.

North Korea's population last year was estimated at 25.48 million, about half of South Korea's population of 51.75 million. Last year, North Korea's life expectancy was 67 years for men and 73.8 years for women. The working-age population (15-64 years) accounted for 70.2% of the total population last year. The proportion of the population aged 65 and over was 10%, which is 6.6 percentage points lower than South Korea's rapidly aging population at 16.6%.

Meanwhile, as of July this year, North Korea has established diplomatic relations with 159 countries worldwide. This is 32 countries fewer than South Korea (191 countries). Additionally, North Korea is understood to have diplomatic missions, including embassies, consulates general, and international organizations, in 34 countries.

North Korea Conducted Test Launch of Hwasong-17 Yesterday… Kim Jong-un Says "Nuclear Will Be Met with Nuclear"
(Pyongyang, Korean Central News Agency=Yonhap News) North Korea test-launched a new type of intercontinental ballistic missile, the Hwasong-17, on the 18th of last month under the leadership of State Affairs Commission Chairman Kim Jong-un. The Korean Central News Agency reported on the 19th of last month, "Amid the strict implementation of our Party and the Republic's government's top priority defense construction strategy to continuously enhance ultra-powerful and absolute nuclear deterrence, the test launch of the new intercontinental ballistic missile of the Democratic People's Republic of Korea's strategic forces was conducted on the 18th." The agency confirmed that Chairman Kim Jong-un personally came to the test launch site "together with his beloved son and wife," revealing that Kim's daughter accompanied him. This is reportedly the first time Kim Jong-un's daughter has appeared in a public setting.
2022.11.19
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