Macroeconomic Forecast North Korea

North Korea's economy remains in a desperate state. The impoverished country, with a population of 22.5mn, had a gross national income of US$20.8bn in 2004, according to South Korea's central bank. This figure is slightly larger than that of Lebanon, with a population of 4million people. Although North Korea's harvest this year is estimated to be 10% better than last year, aid experts say the country is likely to remain short of food until it overhauls its agricultural system. North Korea has asked international agencies to end all humanitarian aid by the end of this year, but after years of under-investment for industry, amid heavy military spending, it will remain reliant on development aid to help with its crumbling infrastructure. This foreign assistance will contribute to the widening trade deficit this year as growth slows

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