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Joined 3 years ago
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Cake day: June 14th, 2023

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  • Of course, the DPRK is a small economy but don’t get confused with Western GDP measures. A lot of times, due to the state subsidies and the fact that socialist currencies can’t really be exchanged for global/western ones at a fixed rate the GDP rates are severely underestimated. Officially the KPW to USD ratio is 8000:1 but a lot of things you’d get for a dollar in USA you’d get for maybe 500KPW in the DPRK, as well as the added effect of subsidies. When China opened up it immediately had a gigantic growth in GDP figures, not because of actual economic growth (that came later) but because the Renminbi was market tradable and the RMB to USD rate was now more accurate.

    But yes I agree that the DPRK having a small economy does have an impact. Also oops, I suck at percentages. Fixed.