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N. Korean Economy Grows Over 3% for Third Consecutive Year in 2025: BOK

Seoul: The North Korean economy grew more than 3 percent for the third consecutive year in 2025, supported by expanded economic cooperation with Russia, South Korea's central bank said Friday. North Korea's gross domestic product (GDP) is estimated to have expanded 3.5 percent from a year earlier in 2025, following 3.7 percent on-year growth in 2024 and 3.1 percent growth in 2023.

According to Yonhap News Agency, expanded economic cooperation with Russia, increased trade with China, and national policy projects helped North Korea post growth of more than 3 percent for three consecutive years. A Bank of Korea (BOK) official noted that North Korea's real GDP has surpassed its 2017 level, when United Nations sanctions were imposed.

Pyongyang deployed around 15,000 combat troops to support Russia in its war against Ukraine after North Korean leader Kim Jong-un and Russian President Vladimir Putin signed a strategic partnership treaty in June 2024. The mining and manufacturing sector rose 4.9 percent on-year in 2025 due to an increase in the manufacturing industry. The BOK reported that weapons production for Russia increased, while a growing number of Russian tourists helped boost food production.

The construction sector expanded 6.3 percent on-year, mainly due to increased non-residential construction and public works under the regime's regional development project, which aims to build modern hospitals in 20 cities and counties each year. The service sector grew 1.8 percent last year, while the agriculture sector gained 3.6 percent. Mining and manufacturing accounted for 30.1 percent of the country's total GDP, with the service sector accounting for 29.6 percent and the agriculture sector 21.2 percent, according to the South Korean central bank.

North Korea's nominal gross national income (GNI) was estimated at 48.5 trillion won (US$33.79 billion) in 2025, equivalent to just 1.8 percent of South Korea's GNI of 2,717.1 trillion won. The North's GNI per capita stood at 1.87 million won, or about 3.6 percent of South Korea's per capita GNI of 52.57 million won, the data showed.

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