North Korea has now posted two consecutive years of negative growth after recording a 0.5% fall in GDP in 2010, according to a report revealed by the Bank of Korea released Thursday.
The report cited a number of domestic and international factors as major contributors to the contracting economy, including poor weather conditions, continuing energy shortages and financial sanctions leading to an overall slump in industrial output.
According to BOK estimates, the negative figure is the fourth in five years for the impoverished nation, after consecutive negative growth in 2006 (-1.0%) and 2007 (-1.2%), pockmarked by a year of growth in 2008 (+3.1%) before slipping back into decline in 2009 (-0.9%).
Inclement weather did not help 2011 output in terms of agriculture, forestry and fisheries, which saw a 2.1% fall. Mining production was also limited due to shortages of coal, contracting 0.2%. Declining output from light industry sliced 0.3% off manufacturing activity.
The only positive side for Pyongyang came in terms of trade, growing from US$3.41 billion last year to US$4.17 billion this year (excluding inter-Korean trade). Exports grew 42.5% to US$1.51 billion, while imports grew 13.2% to US$2.66 billion.
Nominal Gross National Income (GNI) was estimated to be US$26.5 billion (not adjusted for inflation). By way of contrast and offering food for thought for unification planners, South Korea’s GNI is 39 times higher at US$1.17 trillion. The gap between the GNI of both countries has thus grown wider still, up from a ratio of 37.4 last year.
North Korea’s GNI per capita was US$1,097, barely one-nineteenth of its southern neighbor at US$21,240. Unsurprisingly, the gap in GNI per capita also grew last year, from 18.4 to 19.3 times.
Inter-Korean trade grew 13.9% to US$1.91 billion.
General trade and aid to North Korea from the South fell, however exports out of the Kaeseong Industrial Complex grew 16.6% year-on-year.
