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
eleventh 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, 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 July
2002, the government took limited steps toward a freer market
economy. In 2004, heightened political tensions with key donor
countries and general donor fatigue threatened the flow of
desperately needed food aid and fuel aid. Black market prices have
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. In 2004, the
regime allowed private markets to sell a wider range of goods and
permitted private farming on an experimental basis in an effort to
boost agricultural output. Firm political control remains the
Communist government's overriding concern, which will constrain any
further loosening of economic regulations.

GDP (purchasing power parity):
$40 billion (2004 est.)

GDP - real growth rate:
1% (2004 est.)

GDP - per capita:
purchasing power parity - $1,700 (2004 est.)

GDP - composition by sector:
agriculture: 30.2%
industry: 33.8%
services: 36% (2002 est.)

Labor force:
9.6 million

Labor force - by occupation:
agricultural 36%, nonagricultural 64%

Unemployment rate:
NA (2003)

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.)

Budget:
revenues: NA
expenditures: NA, including capital expenditures of NA

Agriculture - products:
rice, corn, potatoes, soybeans, pulses; cattle, pigs, pork, eggs

Industries:
military products; machine building, electric power, chemi