Bloomberg: North Korea’s economy expands

Pyongyang, North Korea
Photo: koreakonsult

North Korea’s economy expanded for a third straight year in 2025, boosted by arms exports to Russia, stronger trade with China, and Kim Jong Un’s drive to develop regional industries, according to estimates by South Korea’s central bank, Bloomberg quotes.

Gross domestic product grew 3.5% in 2025 from a year earlier, the Bank of Korea said Friday. While the pace eased slightly from the previous year’s 3.7% expansion, the North Korean economy continued to post its strongest stretch of growth since international sanctions tightened in 2017. The BOK estimated that North Korea’s real GDP exceeded its 2017 level for the first time.

The report comes as Pyongyang has deepened economic and military ties with Moscow, while boosting trade with China, providing new support for an economy that had struggled under years of sanctions and pandemic-related border closures.

Demand linked to arms exports boosted manufacturing and related industries, while a growing number of Russian tourists and expanded transportation links supported accommodation, food services and transportation, Seo said. The closer relationship with Moscow also boosted North Korea’s national income through a surge in foreign-currency earnings from dispatching workers and soldiers to Russia.

The central bank also attributed the expansion to broad-based gains across manufacturing, construction and agriculture. Manufacturing rose 6.6%, supported by both light and heavy industries, while construction increased 6.3%. Agriculture, forestry and fisheries rebounded 3.6% after contracting a year earlier, benefiting from favorable weather conditions.

Domestically, Kim’s signature “20x10 regional development policy,” which aims to build 20 light-industry factories annually for a decade, also contributed to growth. The construction of roads, railways, public facilities and commercial buildings also lifted construction output.

North Korea’s external trade climbed 16% to $3.13 billion in 2025.

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