North Korea one of the world's most centrally planned and isolated economies

Economy overview 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. Despite an increased harvest in 2005 because of more stable weather conditions, fertilizer assistance from South Korea, and an extraordinary mobilization of the population to help with agricultural production, the nation has suffered its 11th year of food shortages because of on-going systemic problems, including a lack of arable land, collective farming practices, and chronic shortages of tractors and fuel. Massive international food aid deliveries have allowed the people of North Korea to escape mass starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Large-scale military spending eats up resources needed for investment and civilian consumption. In 2004, the regime 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 regime reversed some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. In December 2005, the regime confirmed that it intended to carry out earlier threats to terminate all international humanitarian assistance operations in the DPRK (calling instead for developmental assistance only) and to restrict the activities of international and non-governmental aid organizations such as the World Food Program. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations. 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. Despite an increased harvest in 2005 because of more stable weather conditions, fertilizer assistance from South Korea, and an extraordinary mobilization of the population to help with agricultural production, the nation has suffered its 11th year of food shortages because of on-going systemic problems, including a lack of arable land, collective farming practices, and chronic shortages of tractors and fuel. Massive international food aid deliveries have allowed the people of North Korea to escape mass starvation since famine threatened in 1995, but the population continues to suffer from prolonged malnutrition and poor living conditions. Large-scale military spending eats up resources needed for investment and civilian consumption. In 2004, the regime 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 regime reversed some of these policies by forbidding private sales of grains and reinstituting a centralized food rationing system. In December 2005, the regime confirmed that it intended to carry out earlier threats to terminate all international humanitarian assistance operations in the DPRK (calling instead for developmental assistance only) and to restrict the activities of international and non-governmental aid organizations such as the World Food Program. Firm political control remains the Communist government's overriding concern, which will likely inhibit the loosening of economic regulations.

GDP (purchasing power parity) $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 2005 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 (2005 est.) $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 2005 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 (2005 est.)

Economic indicators (2005) GDP (official exchange rate): NA GDP (official exchange rate): NA GDP real growth rate: 1% GDP real growth rate: 1% GDP per capita (PPP): $1,700 GDP per capita (PPP): $1,700 Labor force: 9.6 million Labor force: 9.6 million Unemployment rate: NA Unemployment rate: NA

GDP composition by sector (2002) agriculture: 30% agriculture: 30% industry: 34% industry: 34% services: 36% services: 36%

Labor force by occupation agriculture: 36% agriculture: 36% industry and services: 64% industry and services: 64%

Agriculture products: rice rice corn corn potatoes potatoes soybeans soybeans pulses pulses cattle cattle pigs pigs pork pork eggs eggs

Main industries: military products military products machine building machine building electric power electric power chemicals chemicals mining (coal, iron ore, magnesite, graphite, copper, zinc, lead, and precious metals) mining (coal, iron ore, magnesite, graphite, copper, zinc, lead, and precious metals) metallurgy metallurgy textiles textiles food processing food processing tourism tourism

Export Exports: $1.275 billion FOB (2004) Exports: $1.275 billion FOB (2004) Exports commodities: minerals, metallurgical products, manufactures (including armaments), textiles, fishery products Exports commodities: minerals, metallurgical products, manufactures (including armaments), textiles, fishery products Exports partners: China 45.6%, South Korea 20.2%, Japan 12.9% (2005) Exports partners: China 45.6%, South Korea 20.2%, Japan 12.9% (2005)

Import Imports: $2.819 billion CIF (2004) Imports: $2.819 billion CIF (2004) Imports commodities: petroleum, coking coal, machinery and equipment, textiles, grain Imports commodities: petroleum, coking coal, machinery and equipment, textiles, grain Imports partners: China 32.9%, Thailand 10.7%, Japan 4.8% (2005) Imports partners: China 32.9%, Thailand 10.7%, Japan 4.8% (2005)

Debt external and economic aid Debt external: $12 billion (1996) Debt external: $12 billion (1996) Economic aid: approximately 350,000 metric tons in food aid, worth approximately $118 million, through the World Food Program appeal in 2004, plus additional aid from bilateral donors and non-governmental organizations Economic aid: approximately 350,000 metric tons in food aid, worth approximately $118 million, through the World Food Program appeal in 2004, plus additional aid from bilateral donors and non-governmental organizations