October 01, 2023

North Korea’s economy contracts for second straight year, ROK central bank says

Bank of Korea estimates 0.1% contraction as COVID, economic mismanagement and sanctions weigh on the economy

North Korea's economy shrank for the second straight year in 2021, according to a new estimate by the Seoul-based Bank of Korea (BOK), as the country’s self-imposed pandemic isolation weighed on its economy.

Drawing inferences from South Korean economic data, the BOK placed the North’s real gross domestic product (GDP) at just $25 billion last year. By comparison, South Korea’s GDP was $1.8 trillion in 2021 — over 50 times higher than the DPRK.