and poor living conditions. Large-scale
military spending draws off resources needed for investment and
civilian consumption. Since 2002, the government has formalized an
arrangement whereby private "farmers' markets" were allowed to begin
selling a wider range of goods. It also permitted some private
farming on an experimental basis in an effort to boost agricultural
output. In October 2005, the government tried to reverse some of
these policies by forbidding private sales of grains and
reinstituting a centralized food rationing system. By December 2005,
the government terminated most international humanitarian assistance
operations in North Korea (calling instead for developmental
assistance only) and restricted the activities of remaining
international and non-governmental aid organizations such as the
World Food Program. External food aid now comes primarily from China
and South Korea in the form of grants and long-term concessional
loans. During the October 2007 summit, South Korea also agreed to
develop some of North Korea's infrastructure and natural resources
and light industry. Firm political control remains the Communist
government's overriding concern, which will likely inhibit the
loosening of economic regulations.

GDP (purchasing power parity):

$40 billion
note: North Korea does not publish any reliable National Income
Accounts data; the datum shown here is derived from purchasing power
parity (PPP) GDP estimates for North Korea that were made by Angus
MADDISON in a study conducted for the OECD; his figure for 1999 was
extrapolated to 2007 using estimated real growth rates for North
Korea's GDP and an inflation factor based on the US GDP deflator;
the result was rounded to the nearest $10 billion (2007 est.)

GDP (official exchange rate):

$25.96 billion (2007 est.)

GDP - real growth rate:

-1.1% (2007 est.)

GDP - per capita (PPP):

$1,700 (2007 est.)

GDP - composition by sector:

agriculture: 23.3%
industry: 43.1%
services: 33.6% (2002 est.)

Labor force:

20 million
note: estimates vary widely (2004 est.)

Labor force - by occupation:

agriculture: 37%
industry and services: 63% (2004 est.)

Unemployment rate:

NA%

Population below poverty line:

NA%

Household income or consumption by percentage share:

lowest 10%: NA%
highest 10%: NA%

Budget:

revenues: $2.88 billion $NA
expenditures: $2.98 billion $NA

Fiscal year:

calendar year