Seoul's Unification Ministry says the North Korean economy continues to struggle mightily with poor growth and a plunge in trade with China.
In a report Thursday, the ministry said that expectations for the North's economic performance in 2018 are also pessimistic, citing reduced industrial output and raw material and other input shortages.
The ministry also voiced concerns regarding food production this year amid forecasts of sustained drought.
Meanwhile, the report notes changes to the North Korean leadership hierarchy as suggested during the recent Pyongyang-Beijing summit meeting.
It said that North Korean leader Kim Jong-un's younger sister, Kim Yo-jong, was seen standing shoulder to shoulder with other top party officials during the recent summit.
The ministry says that her previous role of protocol chief was passed on to Hyon Song-wol, another senior member of the North's Workers' Party.