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China Rail Link Likely to Boost North Korea Economy Despite Covid Outbreak

  • Fitch Solutions expects economy to eke out growth in 2022
  • BOK says North Korea failed to rebound last year from slump

North Korea’s economy will probably eke out growth this year after shrinking for two straight years as the impact of a restored rail link with China outweighs the hit from the country’s virus outbreak, according to Fitch Solutions.

The country’s gross domestic output failed to recover ground last year from a 4.5% contraction in 2020 as pandemic border closures hurt an economy already struggling under sanctions, according to a Bank of Korea report this week.