Economy - overview North Korea, one of the world's most centrally planned and isolated economies, faces desperate economic conditions. Industrial capital stock is nearly beyond repair as a result of years of underinvestment and spare parts shortages. Industrial and power output have declined in parallel. Despite a good harvest in 2001, the nation faces its eighth year of food shortages because of a lack of arable land; collective farming; weather-related problems, including major drought in 2000; and chronic shortages of fertilizer and fuel. Massive international food aid deliveries have allowed the regime to escape mass starvation since 1995-96, but the population remains vulnerable to prolonged malnutrition and deteriorating living conditions. Large-scale military spending eats up resources needed for investment and civilian consumption. In 2001, the regime placed emphasis on earning hard currency, developing information technology, addressing power shortages, and attracting foreign aid, but in no way at the expense of relinquishing central control over key national assets or undergoing widespread market-oriented reforms.

GDP purchasing power parity - $21.8 billion (2001 est.)

GDP - real growth rate -3% (2001 est.)

GDP - per capita purchasing power parity - $1,000 (2001 est.)

GDP - composition by sector
agriculture: 30%
industry: 42%
services: 28% (1999 est.)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) NA%

Labor force 9.6 million

Labor force - by occupation agricultural 36%, nonagricultural 64%

Unemployment rate NA%

Budget
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

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

Industrial production growth rate NA%

Electricity - production 33.4 billion kWh (2000)

Electricity - production by source
fossil fuel: 32.63%
hydro: 67.37%
other: 0% (2000)
nuclear: 0%

Electricity - consumption 31.062 billion kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

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

Exports $708 million (f.o.b., 2000 est.)

Exports - commodities minerals, metallurgical products, manufactures (including armaments); agricultural and fishery products

Exports - partners Japan 40%, South Korea 24%, Hong Kong 7%, China 6%, France 4%, Germany 4% (2000)

Imports $1.686 billion (c.i.f., 2000 est.)

Imports - commodities petroleum, coking coal, machinery and equipment; consumer goods, grain

Imports - partners China 38%, Japan 17%, South Korea 8%, Hong Kong 6%, Germany 4.5% (2000)

Debt - external $12 billion (1996 est.)

Economic aid - recipient $NA; note - nearly $300 million in food aid alone from US, South Korea, Japan, and EU in 2001 plus much additional aid from the UN and non-governmental organizations

Currency North Korean won (KPW)

Currency code KPW

Exchange rates official: North Korean won per US dollar - 2.15 (December 2001), 2.15 (May 1994), 2.13 (May 1992), 2.14 (September 1991), 2.1 (January 1990); market: North Korean won per US dollar - 200 (December 2001)

Fiscal year calendar year

NOTE: The information regarding Korea, North on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Korea, North Economy 2002 information contained here. All suggestions for corrections of any errors about Korea, North Economy 2002 should be addressed to the CIA.