NK's economic growth is 'temporary' thanks to Russia-Ukraine war, study says
North Korea’s recent economic growth in the 3 percent range was a “temporary war windfall” from the Russia-Ukraine war that would potentially lead to reduced domestic consumption, according to an analysis released by a think tank run by South Korea's spy agency on Sunday. In a research paper titled “Is North Korea’s economy really booming?” released Thursday by the Institute for National Security…
North Korea's recent economic growth of around three percent was a temporary boost from the Russia-Ukraine war, according to a new analysis from a South Korean think tank run by the country's spy agency. The study titled "Is North Korea's economy really booming?" by the Institute for National Security Strategy (INSS) argues that the country's economic expansion is not sustainable and will likely result in reduced domestic consumption.
Senior research fellow Lim Soo-ho stated that North Korea's current economic growth is a "predatory expansion" and not genuine growth in the domestic economy, but rather a windfall from war profits and inflation tax. The analysis highlights that North Korea's recent growth has been driven by heavy industry and construction, which do not provide tangible benefits to the public.
The research draws on estimates from the Bank of Korea, which show North Korea's real gross domestic product growing by an unspecified amount.
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