Economics
Sanctions Push North Korea's Economy Into Reverse
- GDP shrank 3.5% in 2017, the biggest decline since 1997
- The outlook for this year is even worse, as exports dry up
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North Korea’s economic trajectory has u-turned from surprisingly strong growth in 2016 to a sharp contraction last year -- and worse is yet to come.
Estimates from South Korea’s central bank show gross domestic product in the North contracted 3.5 percent in the 12 months through December, the biggest drop in two decades. The Seoul-based Bank of Korea, which is considered the most authoritative source for economic data on its neighbor, said tighter sanctions imposed in 2017 will only show their full impact this year.