From Post War Promise To Economic Isolation

North Korea's Economic Decline: A Tale of Missed Opportunities

From Post-War Promise to Economic Isolation

North Korea's economic trajectory has been a striking contrast to that of its southern neighbor. After the Korean War, both countries had similar GDP per capita. However, by the mid-1970s, South Korea had forged ahead, becoming an economic powerhouse while North Korea's economy stagnated.

GDP Disparities and Missed Opportunities

North Korea's GDP per capita has languished far behind South Korea's, averaging just $1,179 billion from 1970 to 2019. In 2019, its GDP reached a record high of $1,800 billion, but subsequent years have seen a sharp decline. In 2022, North Korea's GDP was estimated to be $0 billion, a significant drop from previous years.

Economic Adversity and Nuclear Threats

The economic adversity faced by North Korea has contributed to its decision to refrain from testing nuclear weapons in 2023-24. The EIU expects this trend to continue as the country focuses on addressing its internal economic challenges.