AFP, Seoul :
North Korea’s economy contracted for the first time in five years in 2015, the South’s central bank said Friday, undermining leader Kim Jong-Un’s stated policy of simultaneous military and economic development.
The isolated North’s gross domestic product appeared to have shrunk 1.1 percent last year-the first downturn since 2010 and the sharpest fall since 2007, the Bank of Korea said.
The figure was based on information compiled from state and private organisations, as Pyongyang does not make public its official economic data.
According to the estimate, almost all sectors except for construction and services suffered sharp declines, particularly mining and utilities including power and gas.
The mining sector contracted 2.6 percent on waning production of magnesite and iron ore, while the utilities industry dived 13 percent as a drought sapped hydropower production, the BOK said.
The downturn came during a period of rapid development for North Korea’s nuclear weapons programme-topped by a fourth atomic test in January that resulted in a substantial tightening of international sanctions on Pyongyang.
Kim Jong-Un has repeatedly stated that economic growth enjoys the same priority as military development, but the BOK’s assessment suggests the dual policy is well out of sync.
The tougher UN sanctions imposed in March were backed by North Korea’s main ally, China, which has continued to provide an economic lifeline to its maverick neighbour, despite increasing frustration in Beijing with its nuclear ambitions.
North Korea’s economy contracted for the first time in five years in 2015, the South’s central bank said Friday, undermining leader Kim Jong-Un’s stated policy of simultaneous military and economic development.
The isolated North’s gross domestic product appeared to have shrunk 1.1 percent last year-the first downturn since 2010 and the sharpest fall since 2007, the Bank of Korea said.
The figure was based on information compiled from state and private organisations, as Pyongyang does not make public its official economic data.
According to the estimate, almost all sectors except for construction and services suffered sharp declines, particularly mining and utilities including power and gas.
The mining sector contracted 2.6 percent on waning production of magnesite and iron ore, while the utilities industry dived 13 percent as a drought sapped hydropower production, the BOK said.
The downturn came during a period of rapid development for North Korea’s nuclear weapons programme-topped by a fourth atomic test in January that resulted in a substantial tightening of international sanctions on Pyongyang.
Kim Jong-Un has repeatedly stated that economic growth enjoys the same priority as military development, but the BOK’s assessment suggests the dual policy is well out of sync.
The tougher UN sanctions imposed in March were backed by North Korea’s main ally, China, which has continued to provide an economic lifeline to its maverick neighbour, despite increasing frustration in Beijing with its nuclear ambitions.
