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North Korean economy declining after nuclear test

Posted by Matt in August 17th, 2007

North Korea hailed 2006 as a “year of great victory” thanks to its first nuclear weapon test. But the cost of possessing atomic bombs has put the country’s command economy again on the verge of bankruptcy.

The North’s economy swung to negative growth in 2006 for the first time in eight years largely because of the cost of the nuclear test and subsequent international sanctions, as well as chronic energy and food shortages, according to South Korea’s central bank estimate. The communist economy is also expected to remain in a slump this year as the country was recently hit by heavy flooding that has destroyed more than 11 percent of its grain harvest.

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Published in Economy, Koreas, ,

Map for Seoul, South-Korea

[Countries link to CIA Factbook. States link to Wikipedia.]


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