Seoul: North Korea's economy grows 3.5% in 2025, supported by China and Russia

Estimates released today by the Bank of Korea showed that North Korea’s economy grew by 3.5 percent in 2025, bolstered by increased trade with Russia and China, marking its third consecutive year of growth exceeding 3 percent. This growth rate was slightly lower than the 3.7 percent recorded in 2024, but the estimates indicate that the output of this closed communist state has surpassed its 2017 levels, prior to the full implementation of United Nations sanctions on Pyongyang.

A Bank of Korea official stated at a press conference, “This growth is primarily attributed to the expansion of economic cooperation between North Korea and Russia, alongside increased trade with China, and the government’s push for state-led development projects.”

The official added that demand for North Korean arms exports drove up production across industrial supply chains, while a significant rise in the number of Russian tourists and improved transport links helped boost the accommodation, food services, and travel sectors. The Bank of Korea has been publishing estimates of the North Korean economy since 1991, based on data from South Korean intelligence and trade agencies, given the absence of official statistics from Pyongyang.