North Korea Economy Grows at Fastest Rate in 8 years

North Korea's economy expanded by 3.5% in 2025, easing slightly from an eight-year high of 3.7% in the previous year but marking a third consecutive year of growth above 3%. The expansion was driven by stronger economic cooperation with Russia, rising trade with China, and the government's push for state-led development projects. Manufacturing activity also benefited from increased export demand for North Korean weapons, while higher numbers of Russian tourists and expanded transport links supported the services sector. As a result, the country's economic output was estimated to have exceeded its 2017 level, before UN sanctions on Pyongyang took full effect.

The economy of North Korea grew by 3.7% in 2024, the strongest expansion since 2016, from a 3.1% rise in 2023, driven largely by deepening economic ties with Russia. According to an official from the Bank of Korea (BOK), the improvement was due to significant increases in manufacturing, construction and mining industries, which were affected by strengthening of national policy projects domestically, and expansion of economic cooperation between North Korea and Russia externally. In particular, the heavy chemical sector surged 10.7%, the fastest growth on record, supported by increased production of metal products used in weapons exported to Russia.