[Asia Economy Reporter Jang Sehee] An analysis has emerged that North Korea's exports to China fell by 96% in March.
Lee Seok, Senior Research Fellow at the Korea Development Institute (KDI), stated this in the May issue of the KDI North Korean Economy Review, published on the 29th, in a reference material titled "North Korea's Economy in 2020, a D?j? Vu of 1994?"
According to the data, North Korea's economy has shown a continuous deterioration in foreign trade due to international sanctions against North Korea. In fact, cumulative North Korea-China trade from January to February this year saw exports and imports plunge by 71% and 23%, respectively, compared to the same period last year.
Lee pointed out that North Korea-China trade, which had been declining since 2017 due to international sanctions, has been virtually completely blocked by border closures caused by the COVID-19 pandemic.
He revealed that due to border closures implemented because of the COVID-19 situation, North Korea's imports from China have decreased by more than 90% compared to the previous year starting from March this year.
In March this year, North Korea mainly imported consumer-type products such as cooking oil, cigarettes, and pharmaceuticals from China. The import volume also showed a significant decline compared to the same month last year.
Lee noted, "Just as North Korea's economy was in 1994, essential goods necessary for economic operations are being cut off from imports this year due to the COVID-19 situation."
He analyzed that this phenomenon is similar to the "China shock" experienced by North Korea's economy in 1994. Both shocks occurred in the respective years and had an immediate impact on the economy as sudden shocks.
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