N. KOREA SINCE 1999

relies heavily on neighbouring China — its sole ally and biggest trading partner — for fuel imports and mining exports.

Production in the mining sector — which accounts for 12.6 per cent of the country’s economy — increased 8.4 per cent.

Production in heavy and chemical industries, also a key contributor to the economy, rose 6.7 per cent, while overall exports expanded 4.6 per cent, partly due to shipments of lucrative mineral resources.

China in February stopped coal imports from the North, facing increasing pressure from United States President Donald Trump to tame its unpredictable neighbour, but has continued to trade other commodities, including iron and iron ore, providing a lifeline to the isolated regime.

Despite sanctions, the North’s economy has expanded due to the recent proliferation of hundreds of state-endorsed private markets where vendors sell everything from food to electronic gadgets imported from China.

Although North Korea denies any plans to reform and claims to be socialist, the regime has gradually opened the door to private enterprise under leader Kim Jong-un, experts say.

Kim has also ratcheted up the country’s nuclear programme.

Analysts estimate that the private sector, broadly defined, could be responsible for anything from a quarter to half of the North’s gross domestic product. AFP