North Korean Economy Grows 3.5% on Russia and China Trade

North Korea’s economy grew by 3.5% in 2025 as trade with Russia and China increased, marking a third consecutive year of growth above 3%, according to estimates released by South Korea’s central bank on Friday.

Growth was driven by expanded economic cooperation with Moscow, increased trade with Beijing and state-led development projects. Demand for North Korean weapons boosted manufacturing, while more Russian tourists and expanded transport links supported the lodging, food service and transportation sectors.

Foreign currency earnings also rose sharply from North Korean workers sent abroad and troops deployed to support Russia’s war effort.

Despite the recent growth, North Korea’s economy remains very small. Its nominal gross national income was estimated at 48.5 trillion won ($34bn), equivalent to 1.8% of South Korea’s.

South Korea’s central bank has published estimates of North Korea’s economy since 1991, using data from intelligence and trade agencies because Pyongyang does not release official macroeconomic statistics.

(Reuters, lud)