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Thus, it is an admission of sorts that the economy isn’t doing all that well at the moment.

But fact that these revenue channels are institutionalized parts of the official economy say something about how far North Korea has gone from the Stalinist economic model, even nominally speaking.No reader should take this post to mean that the North Korean economy is doing well, improving, or remains untouched by sanctions.Politically, it would likely be very tough for the state to report a major downturn in a year of such scaled-up sanctions and international pressure.In any case, the budget report – and this isn’t new at all, I should point out – recognizes that a significant share of the economy is out of central government hands: “[…] To see why, consider two budget posts that may appear especially peculiar for a nominally socialist economy: the social insurance fee (사회보험료수입금) and the real estate rent (부동산사용료수입금).The income from the former is expected to grow by 1.2 and 1.8 percent respectively.

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