Analysis How the failed Hanoi summit could impact the North Korean economyLeading indicators suggests stability prevails for now, though renewed foreign investment remains unlikely Last week’s Hanoi summit resulted in no agreement, and the prospects for inter-Korean cooperation appear uncertain at best in light of developments. NK Pro analysis indicates the following: The North Korean economy appears stable, according to multiple sporadically available indicators including the rice price and the exchange rate point to an economy that is not currently in an acute crisis precipitated by sanctions; Inter-Korean cooperation has likely hit a glass ceiling without sanctions relief. But there is some scope for the South to provide additional developmental support and food aid, especially given reportedly poor harvest© Korea Risk Group. All rights reserved. |