Due to big news regarding the economic situation of North Korea, today’s update will feature one story on the economic situation in both countries.
The government has outlined an 11 trillion won ($9.46 billion) extra allocation to the budget in order to prop up the economy which is still sliding. The extra money is a part of Seoul’s 28 trillion won being used to ensure that the South Korean economy grows at least 2.8% this year, a number lower than previously predicted. It will be used to assist the youth in gaining employment, as the unemployment rate of youths aged 15 to 29 reached 10.3% last month, up from May’s 9.7%. Finance Minister Yoo Il-ho said the time is right is aggressive refinancing. Of the 11 trillion won, 9.8 trillion will be going to stimulate the economy, and 1.2 trillion will be going to pay off state debts.
The Bank of Korea reported a shrink of 1.1% of North Korea’s economy last year. This is the first time the reclusive nation has recorded a shrinkage in the economy in 5 years. Under Kim Jung-un North Korea averaged an annual growth rate of 1%. The Bank of Korea also reported that North Korea’s foreign trade dropped to around $6.25 billion, an 18% decrease. The bank estimates these number based on sources from South Korean agencies and then compares them to Sout Korean figures.
Will return to the more thorough Daily Updates on Monday.