Saturday’s developments, anticipated to slash a third of North Korea’s $3 billion export revenue, could “severely hit” foreign exchange inflows into the country, which would widen the trade deficit and erode limited foreign exchange reserves, Rajiv Biswas, Asia Pacific chief economist at IHS Markit, said in a note.

Following a surprising 3.9 percent rise in North Korea’s 2016 economic growth, negative numbers are now expected this year, according to Biswas. “Around 34 percent of the total economy will be experiencing output declines, while the remaining manufacturing, services and construction sectors will also be weak,” he added.

Depriving North Korea of its trade partners, which include various African and Southeast Asian economies, will amount to a revenue loss of “a low hundred million dollars,” which will hurt the Kim regime, said Liang Tuang Nah, a research fellow at Singapore’s Nanyang Technological University.

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