North Korea’s economy survived a record drop in the last 23 years. According to Yonhap, in 2020, the country’s GDP decreased by 4.5 percent. However, the calculations led the South Korean Central Bank for the absence of such data from the DPRK itself.
According to the estimates of Korea Bank, the reason for the reduction was the combination of several factors at once. First, bad weather conditions played their role. Secondly, the economy was pressure of tough restrictions and overlapping borders due to coronavirus pandemic. In addition, UN sanctions affected adversely on GDP.
In early July, the press secretary of the Ministry of Association of South Korea Li Yen Yu said that there are economic problems in North Korea against the background of the Pandemic COVID-19. It was about the increased volatility of exchange rates and prices for goods.
The head of the DPRK Kim Jong Yun spoke about the “great crisis” in the country due to coronavirus. In his opinion, officials “neglected the implementation of important decisions”, which should have ensured the “security of the state and its citizens.”