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 3 percent is a temporary boost caused by the Russia-Ukraine war, according to a new analysis from a South Korean think tank. The Institute for National Security Strategy (INSS), a state-run research organization closely tied to the National Intelligence Service, released a paper titled "Is North Korea's economy really booming?" on Thursday.
The paper's author, senior research fellow Lim Soo-ho, argued that the growth North Korea is experiencing is not genuine improvement in its domestic economy, but rather an artificial expansion driven by war profits and inflation tax. Lim explained that North Korea's recent economic growth has been largely fueled by a sudden surge in heavy industry and construction projects, but these developments do not provide any significant benefits to the general population.
The research was based on estimates from the Bank of Korea, which showed North Korea's real gross domestic product (GDP) growing by approximately 3 percent.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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