According to the Bank of Korea’s (BoK) forecast released at the end of July, North Korea’s real GDP will fall by 4.5 percent in 2020. (Figure 1). It was the steepest drop since the “Arduous March” of 1997, when North Korea was afflicted by starvation. Measures to contain COVID-19, including as blocking borders, quarantining persons with symptoms, and prohibiting travel between cities, contributed to the downturn last year. The North’s real GDP fell to 31.4 trillion won ($27.4 billion) as a result of the economic downturn, matching the level in 2003.
North Korea’s real GDP was lowered by 11 percent between 2016 and 2020 as a result of the simultaneous shock of stronger sanctions in 2016 and the COVID-19 epidemic in 2020, according to the BoK assessment, as its international commerce fell. With the closing of the Gaeseong Industrial Complex in 2016, trade between North and South Korea was effectively halted (Figure 2). As sanctions limited North Korean exports, trade with China, which had accounted for 95 percent of North Korea’s international commerce, decreased over 60 percent from $6 billion in 2016 to less than $3 billion in both 2018 and 2019. China-North Korea trade fell to barely $490 million after the border was closed in 2020, as imports from China plunged. In total, North Korea’s overseas trade in 2020 was barely 13 percent of what it was in 2016. The reduction in North Korea’s international trade from one-fifth of its GDP in 2016 to less than 3% in 2020 reflects the country’s growing international isolation.
Kim Jong Un warned his people to prepare to tighten their belts once more in his 2020 New Year’s greeting.
The North’s huge output decrease in 2020 increased the gap with the South, which only suffered a 0.9 percent drop in real GDP. South Korea’s outstanding performance, compared to the OECD average of 4.8 percent, reflects its effective response to the COVID-19 pandemic and prompt fiscal measures. According to projections from the Bank of Korea, South Korea’s gross national income per capita was 27.3 times more than the North’s in 2020. (Table 1).
“The people’s food situation is currently getting tense since the agriculture sector failed to meet its grain production,” Kim Jong Un said in July 2021, referring to food shortages. It is critical for the entire party and state to focus on agriculture.” There have been reports of significant price rises in rice (Choi, 2021). Households had to develop their own sources of income and food during the 1990s famine because they couldn’t rely on the state distribution system. As a result, there was a spike in bartering and trade in informal markets, resulting in “marketization from below” (Haggard and Noland, 2009). As a result, the North’s economy shifted from being centrally planned to being dualistic, with a state-owned sector complemented by private activity.
However, market activity has been severely harmed by the continued drop in trade since 2016 and restrictions on domestic travel in the North (Lee, 2021). Furthermore, the government has tightened market controls. North Korea enacted market management legislation in November 2020, giving the Workers’ Party more influence and control over markets. The new rules could be an attempt to take a larger share of the revenues and foreign money earned in private markets. Increased party control, on the other hand, runs the risk of suffocating market progress (Jones, 2021).
Is North Korea a wealthy nation?
While North Korea does not make its economic data public, data given by Trading Economics and the World Bank placed the country’s GDP at $18 billion (14.1 billion) by the end of 2020, and demonstrates that it has been expanding year on year. Although this is a small fraction of South Korea’s GDP, which was estimated by the World Bank to be $1.6 trillion (1.3 trillion) in 2020, the fact that North Korea is growing suggests that international sanctions aimed at crippling its ballistic missile and nuclear weapons programs have had little effect.
What is North Korea’s GDP in 2019?
From 1970 to 2019, North Korea’s GDP averaged 11.79 billion dollars, with a peak of 18 billion dollars in 2019 and a low of 4.85 billion dollars in 1995.
What accounts for North Korea’s low GDP?
North Korea’s poor economic performance during the 1990s pushed the leadership to begin opening up the economy to limited international investment and expanded commerce, in addition to accepting foreign aid. North Korea was actively courting foreign investment from European Union (EU) countries, South Korea, and others by the end of the decade. It was more open to talks with EU and Commonwealth countries than with the US, Japan, and South Korea, the latter three having been far more at odds with North Korea diplomatically and strategically since the Korean War (in the case of Japan, since the colonial period) than the others. North Korea has maintained at least minimal contact with each of those three countries because they were the main providers of foreign aid in the early twenty-first century.
Which Korea is more powerful, North or South?
In terms of ground troops and equipment, North Korea has a numerical edge over South Korea. The ground forces of Korea are highly motorized and mobile. North Korea’s firearms are often more powerful and have a longer range than South Korea’s.
In 2021, what would India’s GDP be?
In its second advance estimates of national accounts released on Monday, the National Statistical Office (NSO) forecasted the country’s growth for 2021-22 at 8.9%, slightly lower than the 9.2% estimated in its first advance estimates released in January.
Furthermore, the National Statistics Office (NSO) reduced its estimates of GDP contraction for the coronavirus pandemic-affected last fiscal year (2020-21) to 6.6 percent. The previous projection was for a 7.3% decrease.
In April-June 2020, the Indian economy contracted 23.8 percent, and in July-September 2020, it contracted 6.6 percent.
“While an adverse base was expected to flatten growth in Q3 FY2022, the NSO’s initial estimates are far below our expectations (6.2 percent for GDP), with a marginal increase in manufacturing and a contraction in construction that is surprising given the heavy rains in the southern states,” said Aditi Nayar, Chief Economist at ICRA.
“GDP at constant (2011-12) prices is estimated at Rs 38.22 trillion in Q3 of 2021-22, up from Rs 36.26 trillion in Q3 of 2020-21, indicating an increase of 5.4 percent,” according to an official release.
According to the announcement, real GDP (GDP) or Gross Domestic Product (GDP) at constant (2011-12) prices is expected to reach Rs 147.72 trillion in 2021-22, up from Rs 135.58 trillion in the first updated estimate announced on January 31, 2022.
GDP growth is expected to be 8.9% in 2021-22, compared to a decline of 6.6 percent in 2020-21.
In terms of value, GDP in October-December 2021-22 was Rs 38,22,159 crore, up from Rs 36,22,220 crore in the same period of 2020-21.
According to NSO data, the manufacturing sector’s Gross Value Added (GVA) growth remained nearly steady at 0.2 percent in the third quarter of 2021-22, compared to 8.4 percent a year ago.
GVA growth in the farm sector was weak in the third quarter, at 2.6 percent, compared to 4.1 percent a year before.
GVA in the construction sector decreased by 2.8%, compared to 6.6% rise a year ago.
The electricity, gas, water supply, and other utility services segment grew by 3.7 percent in the third quarter of current fiscal year, compared to 1.5 percent growth the previous year.
Similarly, trade, hotel, transportation, communication, and broadcasting services expanded by 6.1 percent, compared to a decline of 10.1 percent a year ago.
In Q3 FY22, financial, real estate, and professional services growth was 4.6 percent, compared to 10.3 percent in Q3 FY21.
During the quarter under examination, public administration, defense, and other services expanded by 16.8%, compared to a decrease of 2.9 percent a year earlier.
Meanwhile, China’s economy grew by 4% between October and December of 2021.
“India’s GDP growth for Q3FY22 was a touch lower than our forecast of 5.7 percent, as the manufacturing sector grew slowly and the construction industry experienced unanticipated de-growth.” We have, however, decisively emerged from the pandemic recession, with all sectors of the economy showing signs of recovery.
“Going ahead, unlock trade will help growth in Q4FY22, as most governments have eliminated pandemic-related limitations, but weak rural demand and geopolitical shock from the Russia-Ukraine conflict may impair global growth and supply chains.” The impending pass-through of higher oil and gas costs could affect domestic demand mood, according to Elara Capital economist Garima Kapoor.
“Strong growth in the services sector and a pick-up in private final consumption expenditure drove India’s real GDP growth to 5.4 percent in Q3.” While agriculture’s growth slowed in Q3, the construction sector’s growth became negative.
“On the plus side, actual expenditure levels in both the private and public sectors are greater than they were before the pandemic.
“Given the encouraging trends in government revenues and spending until January 2022, as well as the upward revision in the nominal GDP growth rate for FY22, the fiscal deficit to GDP ratio for FY22 may come out better than what the (federal) budget projected,” said Rupa Rege Nitsure, group chief economist, L&T Financial Holdings.
“The growth number is pretty disappointing,” Sujan Hajra, chief economist of Mumbai-based Anand Rathi Securities, said, citing weaker rural consumer demand and investments as reasons.
After crude prices soared beyond $100 a barrel, India, which imports virtually all of its oil, might face a wider trade imbalance, a weaker rupee, and greater inflation, with a knock to GDP considered as the main concern.
“We believe the fiscal and monetary policy accommodation will remain, given the geopolitical volatility and crude oil prices,” Hajra added.
According to Nomura, a 10% increase in oil prices would shave 0.2 percentage points off India’s GDP growth while adding 0.3 to 0.4 percentage points to retail inflation.
Widening sanctions against Russia are likely to have a ripple impact on India, according to Sakshi Gupta, senior economist at HDFC Bank.
“We see a 20-30 basis point downside risk to our base predictions,” she said. For the time being, HDFC expects the GDP to rise 8.2% in the coming fiscal year.
North Korea versus the Philippines: who is wealthier?
Make 4.9 times the amount of money As of 2015, North Korea’s GDP per capita was $1,700, whereas the Philippines’ GDP per capita was $8,400.
Is North Korea an impoverished country?
On the internet, there exists a plethora of statistics and facts about world poverty. While this is beneficial in terms of giving readers a feeling of what is going on in the world, it can also be overwhelming. Statistics and data, however, do not sufficiently depict the realities of impoverished countries. As a result, many people rely on novels to comprehend the human experiences of individuals living in impoverished countries. Most people are unaware of North Korea’s poverty, and novels are an excellent method to educate readers.
Information is relayed through storytelling, and it helps people to obtain official facts. It enables readers to comprehend the realities and feelings of others. Personal experiences, according to the BBC, are crucial in efficiently drawing attention to severe problems in their environment. The emotional response of the readers acts as a catalyst for assistance.
North Korea and Poverty
For many people, North Korea is a mysterious and unknown place. Its population has grown to 25 million people since 1948. North Korea is impoverished as a result of its economic structure and lack of engagement in the global economy. Approximately 60% of the population of North Korea is impoverished.
North Korea operates on the basis of a command economy, which is common in communist nations. Due to a lack of rivalry among firms, the government has complete control over all monetary exchanges, causing the economy to stay largely static. Furthermore, trade restrictions and sanctions imposed by North Korea have severely harmed the country’s economy. As a result of this lack of engagement, the country has practically been shut out of the international market. North Korea’s economy is in danger of collapsing, and poverty levels are rising. Fortunately, the publications listed below contribute to the fight against global poverty by depicting the pain that exists and demonstrating why action is required.
The Girl with Seven Names by Hyeonseo Lee
This work, which was released in 2015, has received widespread acclaim for its ability to communicate such profound human feeling in horrible circumstances. The author’s experiences in North Korea are chronicled in The Girl With the Seven Names. It depicts Lee’s family’s effort to escape poverty. Lee explains the heinous abuse and awful situations she endured while living under the present North Korean leadership in her book.
She also discusses how such events have affected her and those around her emotionally. This publication gives readers a behind-the-scenes peek into North Korea’s poverty. Readers will also gain a better understanding of the people of this country’s living conditions.
The Accusation by Bandi
Between 1989 and 1995, The Accusation was a collection of short stories. This book is unique in that it is not a standard memoir, but rather a collection of tiny chapters that represent the daily lives of North Koreans living in poverty. Information has been difficult to obtain due to the country’s secrecy. As a result, Bandi’s work has become one of the country’s scarce sources. In order to continue reporting, Bandi has chosen to live in North Korea. The Accusation has received a lot of appreciation for its straightforward wording and significance as a primary source.
Dear Leader: My Escape from North Korea by Jang Jin-Sung
Dear Sir or Madam, My Escape from North Korea has received critical acclaim as an expos on the way North Korean high-ranking officers live. Kim Jong-poet il’s laureate at the time was author Jang Jin-Sung. As a result, he gained access to highly filtered information. In this piece, the author and protagonist are forced to depart the country as fugitives after lending a banned magazine to a friend. His writings provide a fascinating look into the life of the upper elite and how the power structure works.
Furthermore, Jin-novel Sung’s reveals the political pressures that come with working closely with Kim Jong-il, as well as the harsh penalties of spreading information. Jin-Sung is able to supply an incredible amount of useful information for people who want to learn more about North Korea’s social injustice.
How These Books Help
These are only a few of the novels that shed light on North Korean people’s experiences and poverty. Many NGOs and countries, thankfully, continue to provide food and monetary relief to those in need. China and South Korea are the most frequent donors to North Korea, with China sending an incredible 240,074 tons of food to the country in 2012. Switzerland, Sweden, Canada, Norway, France, Germany, Denmark, Finland, and Ireland have also pledged to help alleviate poverty in North Korea, according to the UN.
Although North Korea appears enigmatic and closed off, investigating the country’s living conditions is not impossible. Readers will be able to comprehend human challenges that have occurred in this area for almost half a century thanks to primary documents and biographies depicting life in North Korea. Recognizing poverty and understanding how to help has prompted many people to take action today.
Is there Internet in North Korea?
North Korea’s administration has put in place regulations to keep outside sources of information from reaching its citizens. Beginning in the 1990s, when the country was ravaged by famine, traders utilized cell phones to smuggle food and merchandise across the border illegally.
North Korea was introduced to Koryolink, a 3G network, by Orascom Telecom, an Egyptian business, in December 2008. Only foreign travelers and the elite have access to the internet. Koryolink has three million subscribers in North Korea by 2015. Koryolink subscribers must ask for authorization to subscribe and are “under the control and observation of at least eight ministries and organizations from the party, state, and army.” International calls are not permitted on the network. Users may receive propaganda messages from time to time.
Foreigners were permitted 3G mobile phone Internet access through a monthly data subscription in 2013, with the service available through USB modem or SIM card. Increased security measures to eradicate these resources have been imposed recently as the government has become more aware of alternate access to external information. This includes tighter border security where illegal cell phones attempt to connect to China’s mobile networks.
These phones could be used to disseminate specific information about the country’s harsh rulings, which is illegal. Aside from the threat of escapees sharing knowledge of the country’s harsh laws, there is a risk of escapees spreading knowledge of the country’s harsh laws. External journalists and activists in South Korea are provided text messages and cell phone photos to promote awareness of the situation. By exchanging information and sharing stories, some North Koreans operate as journalists and sources. These insiders provided prominent news accounts around Kim Jong-ankle un’s surgery and his wife, Ri Sol-pregnancy ju’s in 2012.
North Korea is pushing for more restrictions as social media and news applications via cellphones become the common thread of news channels. Within the country, a carefully controlled cyberspace exists, with only a tiny number of upper-class individuals having access to the Kwangmyong intranet. This separate resource, in contrast to the otherwise worldwide World Wide Web, facilitates collaboration between industry, academics, and government. It is used to distribute information through government-monitored and filtered chat rooms and emails, providing only a small group of researchers, propagandists, and media professionals access to state media and items that have been taken from the public Internet.