The North Korean economy is expected to post negative growth in 2007, affected by a series of sanctions by the international community against Pyongyang's missile and nuclear tests, a Seoul think tank said Thursday.
The contraction would be the first time since the North Korean economy suffered nine consecutive years of contraction between 1990 and 1998, according to the report by the state-run Korea Institute for International Economic Policy (KIEP).
"It is very likely that the economy could swing back to minus growth if all international aid is suspended," a KIEP researcher said. "For the past years, North Korea's economic growth has been bolstered partly by aid from the outside world, including South Korea." The North Korean economy has posted single-digit growth rates since it grew 6.2 percent annually in 1999. The growth rate for last year has not been disclosed yet but experts forecast that it would be slightly better than the previous year's 2.2 percent.
Economic figures for the reclusive country are announced annually by the Bank of Korea, South Korea's central bank, which analyzes data obtained through various channels, the institute said.
The North rattled the world by conducting test missile launches on July 5 and heightened tension further by conducting a nuclear test on Oct. 9, which drew condemnation from the United States and the international community.
The South Korean government suspended its food and fertilizer aid to the North. Following the nuclear test earlier last week, the United Nations Security Council adopted a resolution calling for tough arms and financial sanctions against the communist country.
Seoul, Oct. 19 (Yonhap New)
N. Korean economy likely to swing back to minus growth next year |
