Economy - overview More than 90% of this command economy is socialized; agricultural landis collectivized; and state-owned industry produces 95% of manufactured goods.State control of economic affairs is unusually tight even for a communistcountry because of the small size and homogeneity of the society and the strictrule of KIM Il-song in the past and now his son, KIM Chong-il. Economic growthduring the period 1984-88 averaged 2%-3%, but output declined by an averageof 4%-5% annually during 1989-96 because of systemic problems and disruptionsin socialist-style economic relations and technological links with the formerUSSR and China. The leadership has insisted on maintaining its high levelof military outlays from a shrinking economic pie. Moreover, a serious drawdownin inventories and critical shortages in the energy sector have led to increasinginterruptions in industrial production. Abundant mineral resources and hydropowerhave formed the basis of industrial development since World War II. Manufacturingis centered on heavy industry, including military industry, with light industrylagging far behind. Despite the use of improved seed varieties, expansionof irrigation, and the heavy use of fertilizers, North Korea has not yet becomeself-sufficient in food production. Indeed, a shortage of arable lands, severalyears of poor harvests, systemic inefficiencies, a cumbersome distributionsystem, and extensive floods in 1995-96 have resulted in recurring food shortages.Substantial grain shipments from Japan and South Korea are offsetting a portionof the losses. North Korea remains far behind South Korea in economic developmentand living standards.

GDP purchasing power parity - $20.9 billion (1996 est.)

GDP - real growth rate -5% (1996 est.)

GDP - per capita purchasing power parity - $900 (1996 est.)

GDP - composition by sector
agriculture: 25%
industry: 60%
services: 15% (1995 est.)

Inflation rate - consumer price index NA%

Labor force
total: 9.615 million
by occupation: agricultural 36%, nonagricultural 64%

Unemployment rate NA%

Budget
revenues: $19.3 billion
expenditures : $19.3 billion, including capital expenditures of $NA (1992 est.)

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

Industrial production growth rate -7% to -9% (1992 est.)

Electricity - capacity 9.5 million kW (1994)

Electricity - production 35.96 billion kWh (1994)

Electricity - consumption per capita 1,394 kWh (1995 est.)

Agriculture - products rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs

Exports
total value: $805 million (f.o.b., 1995 est.)
commodities: minerals, metallurgical products, agricultural and fishery products,manufactures (including armaments)
partners : China, Japan, South Korea, Germany, Hong Kong, Russia

Imports
total value: $1.24 billion (c.i.f., 1995 est.)
commodities : petroleum, grain, coking coal, machinery and equipment, consumer goods
partners: China, Japan, Hong Kong, Germany, Russia, Singapore

Debt - external $8 billion (1992 est.)

Economic aid
recipient: ODA, $NA
note: small amounts of grant aid from South Korea, Japan, US and other countries

Currency 1 North Korean won (Wn) = 100 chon

Exchange rates North Korean won (Wn) per US$1 - 2.15 (May 1994), 2.13 (May 1992), 2.14(September 1991), 2.1 (January 1990), 2.3 (December 1989)

Fiscal year calendar year

NOTE: The information regarding Korea, North on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Korea, North Economy 1997 information contained here. All suggestions for corrections of any errors about Korea, North Economy 1997 should be addressed to the CIA.