Seoul, July 27, (dpa/GNA) - The economy of internationally isolated North Korea shrank for the second year in a row in 2021, according to South Korean estimates.
However, after a 4.5% decline in 2020, the country’s gross domestic product (GDP) fell by just 0.1% last year, according to the central bank report published in Seoul on Wednesday.
The calculations of North Korea’s GDP are considered uncertain, as virtually no current data on economic performance is published by the communist country. According to the Bank of Korea (BOK) in South Korea, the neighbouring country’s economy grew slightly in 2019. The BOK mainly relies on data from the intelligence service and research institutes that specialise in North Korea.
The coronavirus pandemic has taken a heavy toll on North Korea. The leadership in Pyongyang had the country’s borders closed early on because of the virus, which still had a strong impact on trade with China in 2021. In addition, North Korea is subject to international sanctions because of its nuclear weapons programme which have hampered economic development for many years.
GNA