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DPRK economy grows for first time in 9 years
SEOUL. July I North Korea's economy expanded 6.2 per cent in 1999, the first growth in nine years, and South Korean officials predicted that the growth momentum would be sustained, says AP.
Officials at Seoul's central bank of Korea said this week's easing of US economic sanctions against Pyongyang and the expected increase in South Korea investment would positively affect the North's economy.
"It's reasonable to predict that the worst is over for the North Korean economy." said Park Suk-sam. a senior Bank of Korea analyst. "We believe that plus economic growth will continue In the North."
In Its preliminary report, the South Korean bank said that the North's economy turned around in 1999 for the first time since 1990, helped by growth in almost all sectors. Including farm and construction.
Despite the turnaround, however, the size ot North Korea's economy In 1999 still remained at 75 per cent of that 10 years ago in 1989, it said.
North Korea does not release any economic statistics. South Korean officials said they calculated the figures with data collected from North Korea's trading partners and UN and other international groups helping the communist country-
Growth in the North’s construction sector was strongest at 24.3 per cent, farming at 9.2 per cent and mining and manufacturing at 9.9 per cent, it said.
North Korea’s economy began shrinking in 1990 with the fall of communism in the Soviet Union and Eastern Europe, which deprived it of its traditional barter trading partners and aid providers.
That caused the North's economy to shrink 3.7 per cent in 1990. 3.5 per cent in 1991.6.0 per cent in 1992, 4.2 per cent in 1993. 2.1 per cent in 1994. 4 I per cent in 1995. 3.6 per cent in 1996, 6.3 per cent in 1997 and 1.1 percent in 1998. the report said.
The report estimated the North's 1999 gross national product at $15.8 billion, less than 4 per cent that of South Korea, and its per capita income at S714. about 8 per cent that of Its southern neighbour.
North Korea's 1999 trade totalled $1.48 billion, compared with $263.4 billion In South Korea, It said.
Food and energy shortages were blamed for (he North’s economic difficulty, (he report said.
Famine hit North Korea in the early 1990s, forcing the reclusive communist country to appeal for outside aid in 1995 to feed its 22 million people.
In 1999, food production in-creased with foreign fertilizer
aid. bank officials said South Korea is currently shipping 200.000 tons of free fertilizer to the North.
Lifting a half-century economic embargo, the United States on Monday allowed trade with North Korea in nonmili-tary goods and opened air travel and shipping routes between the two countries.
US officials said the action was heavy in symbolism and would not spur large trade with North Korea in the immediate future, given the fact that the communist country is just trying to come out of long and extreme isolation
Seoul officials said North Korea can expect quicker benefit from economic aid and investment from South Korea, following a successful inter-Korea summit last week
In a deal signed during the first-ever summit. South Korea promised to help rebuild the North's shattered economy.
Hundreds of footwear and other labour-intensive South Korean companies hope to relocate their plants to North Korea where labour costs are low
Proposed South Korean economic assistance reportedly includes the provision of surplus electricity and 10 million tons of anthracite, a form of coal which will be used to restart idle North Korean thermal power plants;