North Korea’s economy posts fastest growth since 2016

North Korea’s economy expanded at its strongest pace in eight years in 2024, according to estimates released on August 29 by South Korea’s central bank, as trade with China increased and ties with Russia deepened.

The Bank of Korea (BOK) said gross domestic product grew 3.7% last year, lifting real GDP to nearly 37 trillion won ($26.7 billion). The rebound, which began in 2023 after three years of contraction, was led by heavy and chemical industries, which jumped 10.7%. The report noted higher output of primary metals such as iron, steel and aluminum, Bloomberg writes. 

The growth comes as Kim Jong Un prepares to visit Beijing on Sept. 3 to attend a World War II anniversary parade with Chinese leader Xi Jinping and Russian President Vladimir Putin, his first trip to China since 2019.

The appearance is expected to highlight Pyongyang’s deepening alignment with Moscow and Beijing at a time when “US President Donald Trump has again expressed interest in meeting the North Korean leader.”

China remains a key economic lifeline for Pyongyang, with imports from North Korea rising at a double-digit pace throughout 2024, according to customs data. Meanwhile, U.S. and South Korean officials say Kim has supplied artillery, missiles and even troops to Moscow, reinforcing what they describe as an emerging axis among Washington’s rivals.

Kim has also “poured resources into his weapons program, with missile tests costing about $1 billion in 2023,” according to South Korea’s defense ministry. Washington has accused Pyongyang of using overseas IT workers and cyberattacks to raise funds, including a $1.5 billion theft from cryptocurrency exchange Bybit cited by the FBI earlier this year.

Despite the rebound, North Korea remains impoverished. The BOK estimated its nominal gross national income at 44.4 trillion won in 2024, just 1.7% the size of South Korea’s economy. Per capita GNI was 1.72 million won, or 3.4% of the South’s level.

The BOK cautioned that while its figures are regarded as the best available assessment of North Korea’s economy, they are based on outside estimates and “should not be directly compared with other nations’ data.”

By Sabina Mammadli