North Korea's Economy Grows 3.5%; 3rd Consecutive Year of 3% Growth Driven by Expanded N.K.-Russia Cooperation

North Korea's economy grew in the 3% range for the third consecutive year last year, bolstered by expanded economic cooperation between North Korea and Russia, increased trade with China, and state policy projects.

The Bank of Korea (BOK) released various statistical data today (the 31st), including North Korea's estimated growth rate calculated using the United Nations System of National Accounts (SNA), in its report on the "Estimated Results of the North Korean Economic Growth in 2025."

According to the report, North Korea's real gross domestic product (GDP) last year stood at 38.264 trillion won, an increase of 3.5% from the previous year (36.9654 trillion won).

Following growth rates of 3.1% in 2023 and 3.7% in 2024, North Korea's economy has now recorded growth in the 3% range for three straight years.

Last year's growth rate, following those of 2023 and 2024, also surpassed South Korea's growth rate (1.1%).

According to the BOK, the scale of North Korea's real GDP last year exceeded the level seen in 2017 (37.7435 trillion won), when UN economic sanctions against North Korea began in earnest.

By sector, the manufacturing industry grew by 6.6%, with both light and heavy-chemical industries posting increases.

Although the growth rate slowed compared to the previous year (7.0%), the sector maintained strong growth.

The construction industry also grew by 6.3%, driven by an increase in non-residential building construction and civil engineering.

Agriculture, forestry, and fisheries (3.6%) rebounded from a 1.9% contraction in the previous year, aided by favorable weather conditions.

However, the mining sector (1.6%) saw its growth slow compared to the previous year (8.8%) due to a decline in coal mining.

The electricity, gas, and water supply industries (-0.4%) turned downward as thermal power generation decreased.

The service sector grew by 1.8% from the previous year, marking its highest growth rate since 1994 (2.3%).

The government sector grew by 1.0%, while other sectors such as wholesale and retail trade recorded 5.1% growth.

An analysis of North Korea's industrial structure last year shows that mining and manufacturing (30.1%) held the largest share, followed by services (29.6%), and agriculture, forestry, and fisheries (21.2%).

The shares of agriculture, forestry, and fisheries (from 20.9% to 21.2%) and electricity, gas, and water supply (from 7.2% to 7.4%) increased, while the shares of mining and manufacturing (from 30.5% to 30.1%) and services (from 29.8% to 29.6%) decreased slightly from the previous year.

As of 2025, North Korea's gross national income (nominal GNI) stood at 48.5 trillion won, a 9.4% increase from the previous year.

This is equivalent to 1.8%, or roughly 1/56th, of South Korea's GNI (2,717.1 trillion won).

GNI per capita was 1.873 million won, which is about 1/28th (3.6%) of South Korea's (52.57 million won).

In 2025, the volume of North Korea's external trade (total exports and imports of goods, excluding inter-Korean trade) reached 3.13 billion dollars, up 16.0% from the previous year (2.7 billion dollars).

Exports (470 million dollars) surged 30.0% from the previous year, largely driven by processed feathers, wigs, toys, and sports equipment.

Imports (2.66 billion dollars) also rose 13.9% year-on-year, led by increases in clothing, and animal and vegetable oils and fats.

There was no inter-Korean trade volume recorded last year.

The volume of inter-Korean trade, which had reached 332.6 million dollars in 2016, plummeted following the closure of the Kaesong Industrial Complex that year, trickling down to 3.9 million dollars in 2020, 1.1 million dollars in 2021, and 100,000 dollars in 2022, before recording zero transactions for three consecutive years from 2023 to last year.

(Photo: Yonhap News, captured from Korean Central Television)
※ Please note: This article was translated by AI and may contain errors.