South Korea’s central bank estimates that North Korea’s economy expanded by 3.7% in 2024, marking its fastest pace of growth since 2016 when it grew 3.9%. This rebound comes after a modest 3.1% increase in 2023 and a 0.2% contraction in 2022, reflecting a return to growth following years of stagnation.
The Bank of Korea (BOK) attributed this upswing to a surge in production sectors such as manufacturing, construction and mining, bolstered by intensified domestic policy efforts and expanding economic cooperation with Russia. In particular, the heavy chemical industry soared 10.7%, the highest increase on record, driven in large part by metal product exports tied to Russia’s weapons needs in the Ukraine conflict . The mining sector also posted a strong performance, with growth of 8.8%, a level not seen since 1999.
Meanwhile, North Korea’s overall trade volume dropped by 2.6% to $2.7 billion, remaining below pre-COVID levels. Yet, exports rose 10.8% to $360 million, with items such as wigs and watches among the key contributors. Despite the uptick in growth and trade, economic disparities remain stark. North Korea’s per-capita gross national income for 2024 stood at approximately 1.72 million won ($1,239)—just 3.4% of South Korea’s per-capita income of 50.1 million won.
These findings by the BOK, which relies on intelligence, trade data, and other indirect measures in the absence of official North Korean statistics, underscore the significance of external ties, especially with Russia, in reviving the North’s economy. The report arrives as Kim Jong Un prepares to attend a major military parade in China alongside Russian President Vladimir Putin, an event reflecting deep geopolitical alignment and signaling increased cooperation between these sanctioned regimes.
North Korea’s robust industrial output, despite persistent sanctions and isolation, suggests that strategic military-industrial linkages and state-led economic mobilization continue to sustain its economic engine even as everyday livelihoods remain fragile and global integration remains elusive.
