North Korea's economy experienced its most robust expansion in eight years in 2024, with a reported growth of 3.7%. This significant uptick, the fastest since 2016, follows a 3.1% growth in 2023 and a slight contraction in 2022. The Bank of Korea (BOK) attributes this economic resurgence primarily to substantial gains in the manufacturing, construction, and mining sectors. These advancements have been further supported by domestic policy initiatives and a deepening economic partnership with Russia.
The heavy chemical sector, in particular, saw a remarkable surge of 10.7%, the highest recorded growth for this industry. This expansion is closely linked to increased production of metal products destined for Russia, specifically for weapons. Similarly, the mining sector grew by 8.8%, its largest increase since 1999, reflecting heightened activity in resource extraction. The construction industry also demonstrated strong performance, growing by 12.3%, largely due to an increase in residential building projects.
Despite a 2.6% decrease in the total volume of trade, which amounted to $2.7 billion, North Korea's exports saw a notable increase of 10.8%, reaching $360 million. Key contributors to this export growth included items such as wigs and watches. The nation's nominal gross national income per capita was estimated at $1,239 for 2024, representing a fraction of South Korea's significantly higher per capita income.
This economic acceleration is occurring within a broader context of strengthening geopolitical ties. North Korea has been actively fostering political, diplomatic, and military cooperation with Russia, signaling a potential shift in its traditional economic dependencies. This burgeoning relationship is seen as a strategic move, with Russia benefiting from North Korean armaments and North Korea seeking to alleviate international isolation and secure vital resources. Further underscoring the intertwined nature of these developments, reports indicate that North Korea has been supplying Russia with armaments and troops.
The Bank of Korea's estimates, while considered reliable, are based on various data sources due to the secretive nature of North Korea's economy. The sustained growth, particularly in sectors linked to defense production and international cooperation, presents a complex picture of North Korea's economic trajectory amidst ongoing global realignments.