North Korea logs biggest economic contraction in 23 years
South Korea’s central bank on Friday reported North Korea’s biggest economic contraction in 23 years in 2020. It resulted from the latter’s problems with the United Nations’ sanctions, COVID-19 restrictions, and bad weather.
North Korea’s Gross domestic product (GDP) shrank 4.5% last year in real terms, the Bank of Korea (BOK) said.
The country’s industrial output, which accounts for 28% of the economy, dropped 5.9%, while output from agriculture, forestry, and fisheries fell 7.6%.
The service sector also recorded a 4.0% crash.
Its leader Kim Jong Un shared in June that the country was grappling with a “tense” food situation due to the coronavirus pandemic and last year’s typhoons.
Meanwhile, a South Korean government source said the country struggled with its worst economic crisis since the 1990’s famine. However, few hunger-related deaths have been reported.