Flag description:
three horizontal bands of blue (top), red (triple width), and blue;
the red band is edged in white; on the hoist side of the red band is
a white disk with a red five-pointed star
Economy Korea, North
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. The nation has suffered its tenth
year of food shortages because of a lack of arable land, collective
farming, weather-related problems, 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 the victim of prolonged malnutrition and
deteriorating living conditions. Large-scale military spending eats
up resources needed for investment and civilian consumption. In
2003, heightened political tensions with key donor countries and
general donor fatigue threatened the flow of desperately needed food
aid and fuel aid as well. Black market prices continued to rise
following the increase in official prices and wages in the summer of
2002, leaving some vulnerable groups, such as the elderly and
unemployed, less able to buy goods. The regime, however, relaxed
restrictions on farmers' market activities in spring 2003, leading
to an expansion of market activity.
GDP:
purchasing power parity - $29.58 billion (2003 est.)
GDP - real growth rate:
1% (2003 est.)
GDP - per capita:
purchasing power parity - $1,300 (2003 est.)
GDP - composition by sector:
agriculture: 30.2%
industry: 33.8%
services: 36% (2002 est.)
Population below poverty line:
NA
Household income or consumption by percentage share:
lowest 10%: NA
highest 10%: NA
Inflation rate (consumer prices):
NA (2003 est.)