UN sanctions could send North Korean economy plunging as much as 5%

Country's growth, hit hard by worst drought since 2001, may sink deep into negative territory

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North Korean leader Kim Jong Un provides field guidance in this undated photo released by North Korea's Korean Central News Agency in September 2016.

MITSURU OBE, Nikkei staff writer

TOKYO -- North Korea is in for a plunge in economic activity, following new economic sanctions by the United Nations, on top of tumbling trade with China and the worst drought since 2001.

Despite its rapid progress in ballistic missile capabilities, much of the North Korean economy remains undeveloped and mired in poverty, with few sources of economic growth other than mining and agriculture.

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