North Korea's economy gets shot in arm from Russia arms deal DW 02/01/2024
Briefly

North Korea is expected to experience economic growth for the first time since before the pandemic, as weapons deliveries from Russia boost the country's state coffers. The weapons transfers, which include shells and ballistic missiles, have been denied by both North Korea and Russia. The secret deal between North Korean President Kim Jong Un and Russian President Vladimir Putin is likely to further bolster North Korea's centrally planned economy. The country's economy has been declining for the past five years due to COVID-19 lockdowns and international sanctions. A forecast suggests a return to positive growth of around 1% in 2024.
"The economy has been on the decline for the past five years. So the weapons deal with Russia will help a return to positive growth of around 1% in 2024," Anwita Basu, Head of Europe, Country Risk at Fitch Solutions, told DW.
Despite international sanctions imposed over North Korea's nuclear program, the country's trade with China, its largest partner, recovered to pre-pandemic levels of $2.3 billion in 2021. North Korea does not report economic data, and most statistics are gathered from South Korea's central bank and North Korea's trading partners.
Last year, North Korea's trade with China by far its largest partner recovered to pre-pandemic levels of $2.3 billion, according to Beijing, having dropped dramatically between 2016 and 2018 after sanctions were imposed.
Read at www.dw.com
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