Economy - overview:
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, shortages of spare parts, and poor maintenance. Large-scale military spending draws off resources needed for investment and civilian consumption. Industrial and power output have stagnated for years at a fraction of pre-1990 levels. Frequent weather-related crop failures aggravated chronic food shortages caused by on-going systemic problems, including a lack of arable land, collective farming practices, poor soil quality, insufficient fertilization, and persistent shortages of tractors and fuel. 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. Since 2002, the government has allowed private "farmers' markets" 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 December 2009, North Korea carried out a redenomination of its currency, capping the amount of North Korean won that could be exchanged for the new notes, and limiting the exchange to a one-week window. A concurrent crackdown on markets and foreign currency use yielded severe shortages and inflation, forcing Pyongyang to ease the restrictions by February 2010. In response to the sinking of the South Korean warship Cheonan and the shelling of Yeonpyeong Island, South Korea's government cut off most aid, trade, and bilateral cooperation activities, with the exception of operations at the Kaesong Industrial Complex. In preparation for the 100th anniversary of KIM Il-sung's birthday in 2012, North Korea continued efforts to develop special economic zones with China and expressed willingness to permit construction of a trilateral gas pipeline that would carry Russian natural gas to South Korea. The North Korean government often highlights its goal of becoming a "strong and prosperous" nation and attracting foreign investment, a key factor for improving the overall standard of living. In this regard, in 2013 the regime rolled out 14 new Special Economic Zones set up for foreign investors, though the initiative remains in its infancy. Nevertheless, firm political control remains the government's overriding concern, which likely will inhibit changes to North Korea's current economic system.
GDP (purchasing power parity): GDP (official exchange rate): GDP - real growth rate: GDP - per capita (PPP): GDP - composition, by sector of origin:
Agriculture - products: Industries: Industrial production growth rate: Labor force: Labor force - by occupation:
Unemployment rate: Population below poverty line: Household income or consumption by percentage share:
Budget:
Taxes and other revenues: Budget surplus (+) or deficit (-): Fiscal year: Inflation rate (consumer prices): Exports: Exports - commodities: Exports - partners: Imports: Imports - commodities: Imports - partners: Debt - external: Exchange rates:
$40 billion (2012 est.)
country comparison to the world: 106
$40 billion (2011 est.)
$40 billion (2010 est.)
note:
data are in 2012 US dollars;
North Korea does not publish reliable National Income Accounts data; the data shown here are 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 2011 using estimated real growth rates for North Korea's GDP and an inflation factor based on the US GDP deflator; the results were rounded to the nearest $10 billion.
[see also: GDP country ranks ]
$28 billion (2009 est.)
[see also: GDP (official exchange rate) country ranks ]
1.3% (2012 est.)
country comparison to the world: 167
0.8% (2011 est.)
-0.5% (2010 est.)
[see also: GDP - real growth rate country ranks ]
$1,800 (2011 est.)
country comparison to the world: 198
$1,800 (2010 est.)
$1,900 (2009 est.)
note:
data are in 2011 US dollars
[see also: GDP - per capita country ranks ]
agriculture:
23.4%
industry:
47.2%
services:
29.4% (2012 est.)
rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs
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
0.5% (2013 est.)
country comparison to the world: 157
[see also: Industrial production growth rate country ranks ]
12.6 million
country comparison to the world: 42
note:
estimates vary widely (2012 est.)
[see also: Labor force country ranks ]
agriculture:
35%
industry and services:
65% (2008 est.)
NA%
[see also: Unemployment rate country ranks ]
NA%
[see also: Population below poverty line country ranks ]
lowest 10%:
NA%
highest 10%:
NA%
revenues:
$3.2 billion
expenditures:
$3.3 billion (2007 est.)
11.4% of GDP
country comparison to the world: 206
note:
excludes earnings from state-operated enterprises (2007 est.)
[see also: Taxes and other revenues country ranks ]
-0.4% of GDP (2007 est.)
country comparison to the world: 55
[see also: Budget surplus (+) or deficit (-) country ranks ]
calendar year
NA%
[see also: Inflation rate (consumer prices) country ranks ]
$3.954 billion (2012 est.)
country comparison to the world: 121
$3.703 billion (2011 est.)
[see also: Exports country ranks ]
minerals, metallurgical products, manufactures (including armaments), textiles, agricultural and fishery products
China 63%, South Korea 27% (2012 est.)
$4.828 billion (2012 est.)
country comparison to the world: 131
$4.367 billion
[see also: Imports country ranks ]
petroleum, coking coal, machinery and equipment, textiles, grain
China 73%, South Korea 19% (2012 est.)
$3 billion (2012 est.)
country comparison to the world: 137
[see also: Debt - external country ranks ]
North Korean won (KPW) per US dollar (market rate)
157 (2013 est.)
155.5 (2012 est.)
145 (2010 est.)
3,630 (December 2008)
140 (2007)