Estimates from the Bank of Korea indicate that North Korea's economy shrank for the third consecutive year in 2022, amid the ongoing impact of COVID-19 restrictions and United Nations sanctions on the isolated state's economic activity. External trade recorded a significant recovery after stagnating during the pandemic, reflecting the easing of border restrictions. China is the country’s main trading partner.
The Bank of Korea stated on Friday that the Gross Domestic Product (GDP) shrank by 0.2% in real terms in 2022, following a decline of 0.1% in 2021 and a drop of 4.5% in the previous year, which recorded the worst performance since 1997. The Bank of Korea's estimates are among the most reliable indicators of economic activity in the northern neighbor, which does not publish official data.
Data showed that industrial output decreased by 1.3%, while output from agriculture, forestry, and fishing fell by 2.1%. However, the services sector grew by 1%, marking its largest gains in eight years. The industrial, agricultural, and services sectors represented 30.5%, 23.1%, and 33.4% of the economy, respectively, in 2022.
Estimates also indicated that North Korea's nominal gross national income per capita in 2022 was 1.43 million won, equivalent to only 3.4% of the 42.49 million won in the South.
