North Korean economy sees sharpest decline in 20 years as sanctions bite

According to the Korean central bank forecast, the North Korean economy shrunk at the fastest rate in 2017 because this obviously hinders international sanctions by Pyongyang's nuclear and missile program.

Last year, North Korea's gross domestic product (GDP) fell 5% from last year, the biggest contraction since 1997 devastating famine was 5% of the country's devastating famine, the Bank of Korea said It was.

As the UN Security Council strengthened sanctions on Pyongyang's long-standing nuclear tests, North Korea's coal-intensive industry and manufacturing industry are affected

China is the largest trading partner, strictly implementing sanctions in the second half of 2017 and damaging North Korean manufacturing industry

Industrial production accounts for about one third of the total production of the country, and factory production has declined by 5% due to constraints on energy resources such as petroleum. Agricultural and construction production decreased by 3% and 4% respectively

"The 2017 sanctions are more powerful than 2016," says Shin Seung-cheol, head of the BOK National Accounts Coordination Group.

"The amount of foreign trade has sharply declined due to the ban on coal, steel, fishery and textile exports, although it is difficult to determine these figures, but the ban on exports has destroyed industrial production," Singh said.

At the time of a sudden recession, analysts emphasized that isolated nations need to look to economic development, and leader Kim Jong-un announced action in April.

The Kim pledged to shift from developing North Korea's nuclear weapons to imitating Chinese 'socialist economic construction' and focusing on hosting an unprecedented summit with Singapore's President Donald Trump in June I will apply.

BOK makes economic estimates using economic data summarized by government and spy agencies. Bank surveys included monitoring the size of paddy field crops in border areas, monitoring traffic volume, and interviewing exiles. North Korea has not disclosed economic data

According to BOK, the per capita gross national income of North Korea is 46 million won (1,283.52 dollars), about 4% of Korea.

According to the data of the Korea Trade and Investment Promotion Bureau, the total exports of North Korea declined by 37.2% in 2017, the largest decline since the decrease of 38.5% in 1998.

Surprisingly, the UN Security Council resolved unanimously to impose sanctions on North Korea in response to the latest and most serious nuclear test. New sanctions include ban on Korean textile exports, ban on worker visas in the Democratic People's Republic of Korea, and a 30% reduction in oil imports from the Hermit Kingdom. In general, the sanctions presume that North Korea's annual income will be about 1.3 billion dollars and that the total cost of all sanctions will be $ 2.7 billion a year. Other measures include crackdown on North Korea smuggling activities, closing joint ventures, and investment with other countries.

In recent years, the economic sector of North Korea is subject to UN sanctions. Fines imposed in November 2016 on nuclear tests aimed at punishing Pyongyang two months ago were designed to specifically prevent coal exports from 2017. A few months later, China, China 's most important trading partner, announced that it would suspend North Korea' s coal imports. . Compared to 2016, its export value has decreased by more than 37% compared with the US dollar. Third, coal can be regarded as the main reason for a more extensive linear decline. According to the data of the Bank of Korea, exports of mineral products decreased by 55% or more, while textiles and animal products decreased by about 22% and 16%, respectively.

May 24, 1996: The United States imposed sanctions on missile technology related to North Korea and Iran. Sanctions prohibit import and export to sanctioned companies considered to be related to missiles and the economic department of North Korea. The existing general ban on trade with the two countries made sanctions largely symbolic. * October 16, 1996: After discovering the North Korean mid-range Nodong missile test preparation, the US deployed the reconnaissance ships and aircraft to Japan. . After several meetings between the US and North Korean diplomats in New York, the State Council confirmed November 8 that the missile test was canceled.