North Korea has caved in under US sanctions

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Photo: KCNA / Reuters

The North Korean economy amid Western sanctions in 2017 showed the decline after record growth the year before. To such conclusion the Central Bank of South Korea, snippets of the report which quotes Bloomberg.

A decline in GDP of North Korea by the end of 2017 was 3.5%, calculated in Seoul. This is the largest decline over the last 20 years, and he was particularly sensitive after the results of 2016, when the economy grew by 3.9 percent.

Also fell and exports — 37 per cent for the year. Mainly due to the ban on the supply of overseas coal, iron ore, seafood and textiles — traditionally the major revenue sources of the DPRK. The stagnation will continue, as sanctions imposed last year have yet to yield the maximum effect, I’m sure the South Korean Central Bank.

GDP per capita, however, remained almost unchanged from the year 2016 — 1.28 thousand to $ 1.3 thousand. This is about 4.5 percent from the level in South Korea.

“North Korea could maintain the current state, at least one to two years, stimulating domestic consumption. But if sanctions are to remain long, and oil imports will continue to decrease, it eventually will damage the country”, — quoted a representative of the Korean development Bank.

The Agency reports that problems in the economy will provide an additional lever of pressure the us President Donald Trump in talks with North Korean leader Kim Jong-UN.

International sanctions against North Korea were first introduced in 2006 at the UN level. The most serious limitation in 2016 established in the USA. They fall under any persons or company (not necessarily American), trading or cooperating with Pyongyang. Their assets in the U.S. blocked. Because of the violation of the sanctions regime already affected Chinese smartphone maker ZTE, forced to suspend its activities in the United States. In parallel, the UN banned the export of North Korean coal, iron, lead, and seafood.

Video, photo All from Russia.

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