North Korea economy shrinks most in 21 Years in 2018: South Korea

Vastavam web: North Korea’s economy shrank in 2018 for a second straight year, and by the most in 21 years, hit by international sanctions to stop its nuclear program and by severe drought, South Korea’s central bank said on Friday.

North Korea’s gross domestic product (GDP) contracted by 4.1% last year in real terms, the worst since 1997 and the second consecutive year of decline after a 3.5% fall in 2017, the South’s Bank of Korea estimated.

North Korea’s international trade fell 48.4% in value in 2018 as tougher international sanctions in late 2016 and 2017 cut exports by nearly 90%, the Bank of Korea said.

Output in the mining sector shrank 17.8% because of sanctions on exports of coal and minerals, while the agriculture, forestry and fisheries sector contracted by 1.8% because of drought, it said.