North Korea:
Economy

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Other pages in this profile of North Korea:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition North Korea, one of the world's most centrally directed and least open economies, faces chronic economic problems. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and shortages of spare parts. Industrial and power output have declined in parallel from pre-1990 levels. Due in part to severe summer flooding followed by dry weather conditions in the fall of 2006, the nation suffered its 13th year of food shortages because of on-going systemic problems including a lack of arable land, collective farming practices, and persistent shortages of tractors and fuel. During the summer of 2007, severe flooding again occurred. Large-scale international food aid deliveries have allowed the people of North Korea to escape widespread starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Large-scale military spending draws off resources needed for investment and civilian consumption. Since 2002, the government has formalized an arrangement whereby private "farmers' markets" were allowed to begin selling a wider range of goods. It also permitted some private farming on an experimental basis in an effort to boost agricultural output. In October 2005, the government tried to reverse some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. By December 2005, the government terminated most international humanitarian assistance operations in North Korea (calling instead for developmental assistance only) and restricted the activities of remaining international and non-governmental aid organizations such as the World Food Program. External food aid now comes primarily from China and South Korea in the form of grants and long-term concessional loans. During the October 2007 summit, South Korea also agreed to develop some of North Korea's infrastructure and natural resources and light industry. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations.
GDP (purchasing power parity)	Definition - World rank and map $40 billion note: North Korea does not publish any reliable National Income Accounts data; the datum shown here is derived from purchasing power parity (PPP) GDP estimates for North Korea that were made by Angus MADDISON in a study conducted for the OECD; his figure for 1999 was extrapolated to 2007 using estimated real growth rates for North Korea's GDP and an inflation factor based on the US GDP deflator; the result was rounded to the nearest $10 billion (2007 est.)
GDP (official exchange rate)	Definition $2.22 billion (2006 est.)
GDP - real growth rate	Definition - World rank and map -1.1% (2006 est.)
GDP - per capita	Definition - World rank and map $1,900 (2007 est.)
GDP - composition by sector	Definition agriculture: 23.3% industry: 43.1% services: 33.6% (2002 est.)
Labor force	Definition 20 million note: estimates vary widely (2004 est.)
Labor force - by occupation	Definition agriculture: 37% industry and services: 63% (2004 est.)
Unemployment rate	Definition - World rank and map NA%
Population below poverty line	Definition NA%
Household income or consumption by percentage share	Definition lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices)	Definition - World rank and map NA%
Budget	Definition revenues: $2.88 billion $NA expenditures: $2.98 billion $NA
Agriculture - products	Definition rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs
Industries	Definition military products; machine building, electric power, chemicals; mining (coal, iron ore, limestone, magnesite, graphite, copper, zinc, lead, and precious metals), metallurgy; textiles, food processing; tourism
Industrial production growth rate	Definition - World rank and map NA%
Electricity - production	Definition - World rank and map 22.5 billion kWh (2006 est.)
Electricity - consumption	Definition - World rank and map 18.57 billion kWh (2005)
Electricity - consumption per capita	Definition - World rank and map 791 kWh (2005)
Electricity - exports	Definition 0 kWh (2007)
Electricity - imports	Definition 0 kWh (2007)
Oil - production	Definition - World rank and map 141 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 10,520 bbl/day (2006)
Oil - consumption per 1,000 people	Definition - World rank and map 0.4 bbl/day (2006)
Oil - exports	Definition - World rank and map 0 bbl/day (2006)
Oil - imports	Definition - World rank and map 10,520 bbl/day (2006 est.)
Oil - proved reserves	Definition - World rank and map NA bbl
Natural gas - production	Definition - World rank and map 0 cu m (2007 est.)
Natural gas - consumption	Definition - World rank and map 0 cu m (2007 est.)
Natural gas - consumption per capita	Definition - World rank and map 0 cu m (2007 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2007 est.)
Natural gas - imports	Definition - World rank and map 0 cu m (2007)
Natural gas - proved reserves	Definition - World rank and map 0 cu m (1 January 2007)
Exports	Definition - World rank and map $1.466 billion f.o.b. (2006)
Exports - commodities	Definition minerals, metallurgical products, manufactures (including armaments), textiles, agricultural and fishery products
Exports - partners	Definition South Korea 32%, China 29%, Thailand 9% (2006)
Imports	Definition - World rank and map $2.879 billion c.i.f. (2006)
Imports - commodities	Definition petroleum, coking coal, machinery and equipment, textiles, grain
Imports - partners	Definition China 27%, South Korea 16%, Thailand 9%, Russia 7% (2006)
Debt - external	Definition - World rank and map $12.5 billion (2001 est.)
Economic aid - recipient	Definition $372 million note: approximately 65,000 metric tons in food aid through the World Food Program appeals in 2007, plus additional aid from bilateral donors and non-governmental organizations (2007 est.)
Currency (code)	Definition North Korean won (KPW)
Exchange rates	Definition official: North Korean won per US dollar - 140 (2007), 141 (2006), 170 (December 2004), market: North Korean won per US dollar - 2,500-3,000 (December 2006)
Fiscal year	Definition calendar year

North Korea: Economy

North Korea:
Economy