The North Korean economy has experienced a record decline in the past 23 years. In 2020 the country’s GDP fell by 4.5 percent. However, the calculations were carried out by the Central Bank of South Korea in the absence of such data from the DPRK.

According to estimates from the Bank of Korea, the reason for the decline was a combination of several factors. Firstly, bad weather conditions played a role. Secondly, the economy was under pressure from tight restrictions and border closures due to the coronavirus pandemic. Additionally, UN sanctions had a negative influence on GDP.