North Korea's Economy Contracts Sharply in Q4 2022
GDP Declines by 0.20 Percent Year-over-Year
The Gross Domestic Product (GDP) of North Korea contracted by 0.20 percent in the fourth quarter of 2022, compared to the same quarter of the previous year. This marks a significant decline from the previous quarter, when GDP had grown by 0.10 percent.
The contraction is attributed to a number of factors, including the COVID-19 pandemic, which has led to border closures and disrupted trade. North Korea has also been hit by a series of natural disasters, including floods and droughts, which have damaged infrastructure and disrupted agricultural production.
Comparison to South Korea
North Korea's economic performance has long lagged behind that of its southern neighbor, South Korea. In the aftermath of the Korean War, the two countries had similar GDP per capita. However, by the mid-1970s, South Korea had pulled ahead and has continued to widen the gap since then. In the late 1990s, North Korea's GDP per capita was less than $2,000, while South Korea's was over $10,000.
The disparity between the two countries is due to a number of factors, including North Korea's closed economy, its reliance on central planning, and its isolation from the global economy. South Korea, on the other hand, has benefited from a more open economy, a strong manufacturing sector, and a highly skilled workforce.
The latest GDP figures show that the gap between North and South Korea is continuing to widen. This is a concerning trend, as it suggests that North Korea is falling further behind in the global economy.
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