North Korea's economy is growing thanks to cooperation with Russia
North Korea’s economy has been growing for the third consecutive year. The Bank of Korea believes this growth has been driven by deeper cooperation with Russia, increased trade with China, and major domestic government projects.
North Korea’s economy has continued to grow for the third consecutive year. The Bank of Korea attributes this primarily to the expansion of economic cooperation between Pyongyang and Moscow, as well as to increased trade with China. According to the South Korean regulator, the DPRK’s gross domestic product grew by 3.5% in 2025. By comparison, the country’s economy grew by 3.7% in 2024 and by 3.1% in 2023.
The Bank of Korea notes that this is the third consecutive year that North Korea’s economic growth rate has exceeded 3%. “Expanded economic cooperation with Russia, increased trade with China, and national policy projects have helped North Korea achieve growth of over 3% for three consecutive years,” said a representative of the central bank.
According to him, North Korea’s real GDP has already surpassed the 2017 level—a period when United Nations sanctions were imposed on the country. Officials in Seoul believe that one of the main factors driving economic growth has been the sharp deepening of cooperation between Pyongyang and Moscow following the signing of a strategic partnership agreement by North Korean leader Kim Jong-un and Russian President Vladimir Putin in June 2024.
According to South Korean estimates, North Korea subsequently sent approximately 15,000 troops to Russia to participate in the war against Ukraine. In addition, the Bank of Korea notes that cooperation with Russia has contributed to an increase in arms production. The increase in the number of Russian tourists has also had a positive impact on economic indicators, stimulating food production and the service sector.
Despite this positive trend, North Korea’s economy remains significantly smaller than South Korea’s. According to estimates by the Bank of Korea, North Korea’s nominal gross national income in 2025 was 48.5 trillion won, or approximately 33.8 billion U.S. dollars.
By comparison, South Korea’s gross national income for the same period is estimated at 2,717.1 trillion won. This means that North Korea’s economy accounts for only about 1.8% of its neighbor’s economy. The Bank of Korea emphasizes that North Korea’s current economic growth is largely linked to external support and the development of cooperation with Russia and China, while international sanctions against Pyongyang remain in effect. Yonhap reported this, citing estimates from the Bank of Korea.
South Korea currently has no confirmation of a new large-scale deployment of North Korean troops in Russia. At the same time, Seoul continues to closely monitor military cooperation between Moscow and Pyongyang.
