North Korea's GDP projected to rise 3.5% in 2025 on expanded Russia and China trade

The Bank of Korea released estimates that the Democratic People’s Republic of Korea will record a real GDP growth rate of 3.5% in 2025, marking a third consecutive year of expansion above 3%. The modest slowdown from 3.7% in 2024 still places the economy above its 2017 output, the year United Nations sanctions on the North fully took effect.

Growth is attributed to deeper economic cooperation with the Russian Federation, higher trade volumes with the People’s Republic of China, and state‑led development projects. Increased weapons exports to Russia, a rise in Russian tourists, expanded transport links, remittances from overseas workers, and funding generated by North Korean soldiers deployed in support of Russia’s war in Ukraine are cited as additional drivers. Recent diplomatic activity, including a meeting between North Korean Foreign Minister Choe Son‑hui and President Vladimir Putin and the 65th anniversary of the DPRK‑China friendship treaty, underscores the strengthening ties.

The assessment suggests that the North Korean economy has begun to recover to pre‑sanction levels, though the growth remains dependent on its strategic partnerships with Moscow and Beijing.