Seoul — North Korea’s economy grew in 2016 at the fastest pace since 1999, helped by a recovery from a drought in 2015. Military spending, including on testing nuclear weapons and missiles, also boosted growth — and raised tension in the region. Gross domestic product expanded 3.9% from a year earlier, according to an estimate from the Bank of Korea, the South Korean central bank. That was the biggest rise since a 6.1% gain in 1999. The expansion was concentrated in mining, manufacturing, and utilities such as electricity, gas and water supplies. Per capita income, however, was estimated at 1.46-million won ($1,300), or about 4.5% of that of its southern neighbour. The Bank of Korea said it estimates North Korea’s economic growth by using raw data compiled by related organisations such as the intelligence agency and unification ministry. The calculation had limits, with the central bank using South Korean data such as prices to substitute for unknown information. North Korea’s missi...
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