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sanctions over nuclear tests with North Korea

South Korea’s central bank says that North Korea’s economy expanded in 2008, thanks to high agricultural yields after contracting for two years in a row. Last year the North Korean economy grew 3.7% compared to a year earlier, after shrinking by 2.3% in 2007 and by 1.1% in 2006. Agricultural production rose nearly 11% in 2008 compared with 2007. And coal, iron ore and other mineral production grew 2.3% for the year. Central bank said “temporary” factors, such as good weather, had helped boost agricultural production. Despite the growth, the size of the economy is a fraction of South Korea’s.

Last 2007 there were a deal that agreed to give North Korea 1 million tons of fuel oil and other benefits from the US and other nations, in exchange for disabling its nuclear facilities. However in May 2009 North Korea walked out of international talks aimed at ending its nuclear activities, and the country carried out its second underground nuclear test. As a result, the UN Security Council extended sanctions against North Korea.

Analysts expect such sanctions will squeeze North Korea’s economy again. South Korea’s central bank releases yearly estimate of North Korea’s economic growth, but North Korea does not release official economic data.

It might be a bit late for Coca Cola on the healthy approach to carbonated drinks, but at least it is marking its arrival with a bang, by releasing a green tea flavored Cola. Report says that starting Monday Japan will be the first country to get the new type of Cola. Coca Cola is the established leader on the Japanese soft drinks market, but the move was prompted by competition catching up fast as well.

For starters, Pepsi already has plans to bring one such health-focused drink on the market, which will go by the name of Pepsi Shiso and is based on basil. Non-carbonated bottled soft drinks with green tea are also starting to gain ground, numbers indicate, which might endanger Cola’s position in Japan – therefore, coming out with a new flavor was a must, specialists say.

With these initiatives, most of the time, the adjustments that are being made are nothing short of dust in the eyes of the consumer, since they bring nothing new to the table as regards the bigger picture. The same could hold true for the green tea flavored Coca Cola but the people be the jury on this one.

General Motors Company

Hopes is the only thing left with US carmaker General Motors (GM) to return profitability in 2011 after emerging from bankruptcy protection. The company’s financial adviser Evercore Partners estimates that GM will lose $17.5bn (£10.9bn) this year before making a profit of $3bn in 2011, news said. This estimate is based on GM selling 16 million vehicles a year, up from current levels of less than 10 million. A slump in sales forced GM to file for bankruptcy protection this week.

They also announced this week that it had agreed to sell its Hummer brand of sports utility vehicles by the end of September. However, reports suggest that a deal with China’s Sichuan Tengzhong Heavy Industrial Machinery may be blocked by Chinese regulators. But, analysts say that the gas-guzzling image of Hummer does not sit well with China’s attempts to develop an auto industry focused on smaller, fuel-efficient cars.

US government backed GM’s to move into bankruptcy protection, which is expected to take a 60% stake in the carmaker. In fact, the White House is also putting another $30bn into GM on top of the $20bn it has already given the carmaker. It is expected that GM may be able to exit bankruptcy protection within the next 60-90 days. GM, along with carmakers across the world, has suffered from a massive drop in sales during the economic downturn.