North Korean economy posts rare growth in 2011

  • North Korea's economy posted rare growth last year on the back of harvests and construction activity in the capital Pyongyang.

    The reclusive state's economy expanded by 0.8 percent in 2011, estimates by South Korea's central bank showed on Sunday.

    It was only the second time in the past six years the closed economy has expanded.

    North Korea's economy spiralled into freefall with the collapse of its main benefactor, the Soviet Union, in the early 1990s. It now relies heavily on China for economic and political support and remains one of the world's poorest and least developed states.