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Despite extreme sanctions, the DPRK is growing like crazy

Excerpt from "Report on 9th Enlarged Plenum of 8th WPK Central Committee", http://kcna.kp/en/article/q/5a9ffe6e4d6704ac1838b14785365295.kcmsf.

This entire article was amazing to read, but the economic report really stood out to me:

"The report reviewed the remarkable successes made in the overall national economy.

The 12 goals for the national economic development were all attained with 103 percent of grain production, 100 percent of electric power, coal and nitrogenous fertilizer, 102 percent of rolled steel, 131 percent of nonferrous metal, 109 percent of logs, 101 percent of cement and ordinary cloth, 105 percent of marine products, 106 percent of railway freight transport and 109 percent of houses under construction. And the overall economy witnessed clear production growth, including 220 percent of motor production, 208 percent of transformers, 121 percent of bearings, 140 percent of electric zinc, 121 percent of lead, 113 percent of paper, 110 percent of salt, 109 percent of cosmetics, 100 percent of flat glass and 104 percent of magnesia clinker, and plan discipline was established.

Compared with the total growth of the economic sector in 2020, the previous year of the 8th Party Congress, the production of important indices largely went up in 2023 by raising the production of iron trioxide 3.5 times, pig iron 2.7 times, rolled steel 1.9 times, machine tools 5.1 times, cement 1.4 times and nitrogen fertilizer 1.3 times and the GDP grew up 1.4 times.

The report estimated the over-fulfillment of the goal of grain production, the dominant height of decisive significance in the overall economic development and the guarantee of people's living, as the most precious and valuable success achieved in the economic work for 2023."

40% growth in three years is insane; that's something like 12% annual GDP growth which I don't think has any parallels in the industrial world. Piecing together KCNA reports on "industrial management software" it seems that the DPRK is currently in the middle of implementing some kind of computerized planning software akin to the one in "Towards A New Socialism", which would explain this insane growth. Cross-checking the figures with past growth rates and national priorities makes these numbers make sense. I think around the beginning of Kim Jong Un's tenure the GDP reports by Hyundai suggested a 9% GDP growth rate. Kim Jong Un has recently been stressing about the need to fix the DPRK's energy and most primarily oil problem, which has since the Arduous March probably been the biggest bottleneck to economic growth. Although tourism to the DPRK has been closed for a while now, the occasional KCNA report as well as DPRK tour videos recorded just before lockdown show just how insane the growth rate has been in the DPRK, with new modern buildings popping up everywhere, farmers making use of drone technology, the formerly desolate streets of Pyongyang now having regular traffic jams from all the new supply trucks, and the new factories popping up all over the country producing consumer goods and compensating for sanctions by producing things like major medical machinery. While the imperial core and the capitalist world as a whole has been deteriorating, the DPRK has never been better.

Kim Jong Un's Mallima is real!

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2 comments
  • 40% growth in 3 years is just shy of 12% growth per year. Even considering how it's proportionally easier for smaller economies to grow, it's still impressive.

    • Of course, the DPRK is a small economy but don't get confused with Western GDP measures. A lot of times, due to the state subsidies and the fact that socialist currencies can't really be exchanged for global/western ones at a fixed rate the GDP rates are severely underestimated. Officially the KPW to USD ratio is 8000:1 but a lot of things you'd get for a dollar in USA you'd get for maybe 500KPW in the DPRK, as well as the added effect of subsidies. When China opened up it immediately had a gigantic growth in GDP figures, not because of actual economic growth (that came later) but because the Renminbi was market tradable and the RMB to USD rate was now more accurate.

      But yes I agree that the DPRK having a small economy does have an impact. Also oops, I suck at percentages. Fixed.