On August 20, Kim Jong Un offered a rare public acknowledgement of several crises North Korea is currently facing. Citing “severe internal and external situations” and “unexpected … challenges,” he conceded government failures to improve the country’s economy, noting that “many of the planned goals for national economic growth have not yet been attained nor [have] the people’s living standards improved markedly.” It was an unprecedented admission and demonstrates the severity of North Korea’s current dire economic situation.
North Korea is facing a triple set of crises. The Covid-19 pandemic led the totalitarian country to seal its borders in January, causing huge drops in its imports and exports with China, which accounts for almost all the country’s external trade. North Korea’s economy had already been shrinking significantly since 2016 from intensifying sanctions related to its weapons program. And in the past few weeks, historic levels of torrential rains have caused widespread damage across the country and left at least 22 people dead and 4 missing. Thousands of houses and public buildings have been flooded, nearly 100,000 acres of crops damaged, and critical infrastructure destroyed.
[Human Rights Watch]