Gdp Falls For Third Consecutive Year

North Korea's Economy in Decline

GDP Falls for Third Consecutive Year

North Korea's gross domestic product (GDP) fell by a significant margin in 2022, marking the third consecutive year of decline. According to preliminary estimates, the country's GDP stood at 000B in 2022, representing a steep decrease from the 000B reported in 2021. This decline is a continuation of the economic downturn that began in 2020, when GDP fell by 000B.

Economic Struggles

The recent economic struggles in North Korea can be attributed to a combination of factors, including international sanctions, natural disasters, and the ongoing COVID-19 pandemic. The country's isolation from the global community has severely impacted its trade and investment opportunities. Additionally, North Korea's centrally planned economy, which lacks market incentives and private sector initiative, has hindered economic growth.

Historical Comparison

Prior to the mid-1970s, North Korea's GDP per capita was comparable to that of its southern neighbor, South Korea. However, North Korea's economy has since diverged significantly from South Korea's, with the latter experiencing rapid economic growth and development. This disparity has resulted in a significant gap in living standards between the two countries.

North Korea's GDP per capita remains among the lowest in the world. Since 1970, the country's GDP has fluctuated between 485 USD billion and 1,800 USD billion, with an average of 1,179 USD billion.

Defense Spending Priority

Despite its economic challenges, North Korea has maintained a high level of defense spending. Between 2010 and 2020, military expenditures accounted for an estimated 20-30% of North Korea's GDP. This prioritization of defense spending has further strained the country's already limited resources.