North Korea's economy contracts for third straight year

North Korea

Published: 24 Dec. 2023, 07:00

North Korea's economy contracts for third straight year

North Korea commemorates the 78th anniversary of the establishment of its ruling communist party on Oct. 10, as seen in this photo released by the North's state-run Korean Central News Agency. [YONHAP]

North Korea’s economy shrank for the third consecutive year while the country’s population reached 25.7 million, around half of South Korea’s 51.67 million.

The North’s GDP dropped 0.2 percent on-year in 2022, according to Statistics Korea’s report on key North Korean economic indicators published Wednesday.

Kim Jong-un sheds tears for mothers as North combats falling birthrate

North Korea's economy contracted by 4.5 percent in 2020 due to Covid-19 and 0.1 percent in 2021.

Production dropped by 4.6 percent in the manufacturing sector, 1.3 percent in the mining industry and 2.1 percent in the agriculture, forestry, and fisheries industries.

The country’s nominal GDP was 36.2 trillion won ($27.9 billion) last year, which amounts to one-sixtieth of South Korea’s GDP of 2161.8 trillion won.

Its nominal gross national income (GNI) was 36.7 trillion won. The GNI per capita was 1.43 million won, an increase of 0.5 percent on-year. The per capita GNI gap with South Korea increased, with the average South Korean earning 42.5 million won, 29.7 times more than their northern neighbors.

North Korea’s population increased by 90,000 people over a year to reach 25.7 million last year. Life expectancies were 71.9 for men and 78.3 for women, shorter by 8 and 7.3 years compared to their South Korean counterparts.

Despite the population increase, North Korean leader Kim Jong-un shed tears during the National Meeting of Mothers on Dec. 3, signifying the nation’s declining birthrate. Experts say the North’s fertility numbers do not bode well, given the size and makeup of its economy.

Approximately 185 out of 10,000 North Koreans were college students, around one-third of South Korea's rate.

Average daily calorie intake dropped 2.4 percent on-year to 1,982 kilocalories for North Koreans. South Koreans consumed 1.6 times that amount, at 3,156 kilocalories per person. The North Koreans’ average daily intake has trended downward after reaching a peak in 2004, with 2,206 kilocalories.

North Koreans consumed 55.1 grams of protein and 31.2 grams daily, not even half of their southern counterpart’s average daily intake of 113.3 grams of protein and 123.6 grams of fat.

North Korea’s agricultural production dropped 4.0 percent on-year to 4.5 million tons. Rice production fell 3.8 percent to 2.07 million tons, just 55.1 percent of South Korea’s rice production.

North Korea’s total value of trade in goods jumped 122.4 percent on-year to $1.59 billion. South Korea’s trade value was 892.2 times larger, at $1.4 trillion.

North Korea’s exports and imports increased by 93.9 percent and 126.1 percent to $160 million and $1.43 billion, respectively. China was the country's largest trading partner, accounting for 96.7 percent of total trade.

BY JEONG HYE-JEONG, KIM JU-YEON [kim.juyeon2@joongang.co.kr]