WSJ: North Korea’s economy shows unexpected growth

North Korea’s economy is emerging as an unexpected growth story, expanding in ways not seen in years, supported by arms exports, troop deployments to Russia, and assistance from China, as well as its ability to bypass international sanctions to bring in fuel, parts, and raw materials, The Wall Street Journal reports.

The outlet said during the COVID-19 pandemic, the Kim government sealed its borders almost completely.

Since then, it has only selectively reopened to limited groups, including Russian and Western visitors as well as diplomats. Those who have been there say the country—especially Pyongyang, where the ruling elite reside—now feels very different from before.

The capital features restaurants serving wood-fired pizza and chicken wings, digital payment systems using QR codes, and streets filled with Chinese-made electric vehicles. Pyongyang also now has pet shops, internet cafés for gaming, and car dealerships offering BMW vehicles.

Kim has also launched a large-scale construction drive across the country. In the past year alone, 10,000 new housing units were built in Pyongyang—surpassing the annual output of cities like Los Angeles or Chicago.

Over the past year, several long-delayed projects have been completed, including the city’s largest hospital, a greenhouse facility larger than New York’s Central Park, and a new coastal resort complex. His flagship “20×10” plan envisions building factories in 20 regions every year for a decade, alongside local development projects that include hospitals, light industry facilities, and recreational complexes.

The government is also expanding state-run shops and pharmacies in an effort to reduce black market activity, while new factories in rural areas are providing formal employment for former smugglers, according to Lee Sang-yong, a researcher with connections inside the regime.

“Some of the funds that the Kim regime made through selling weapons and hacking are trickling down to the residents,” said Lee, who leads a data research centre affiliated with DailyNK, an online news outlet.

The WSJ, citing South Korean think tank data, reports that North Korea is also increasing its oil storage capacity, with more energy shipments arriving at its ports.

Analysts additionally point out that the country appears to be roughly three times brighter at night than it was five years ago, suggesting higher energy consumption and improved electricity access.

By Bakhtiyar Abbasov