North Korea Growth Topped 3% for Third Straight Year in 2025: Seoul

North Korea's economy experienced its third consecutive year of growth exceeding 3% in 2025, as estimated by South Korea's central bank. The Bank of Korea (BoK) attributes this sustained expansion primarily to Pyongyang's strengthening economic and military relationship with Russia.

“

The expansion of economic cooperation with Russia was a major driver of North Korea's growth last year.

According to the BoK's report, North Korea's real gross domestic product (GDP) expanded by 3.5% to 38.26 trillion won ($26.6 billion) last year. Analysts suggest that North Korea's supply of troops and munitions for Russia's war in Ukraine has been a key factor, yielding financial support, food, energy, and military technology in return. A BoK official noted that "the expansion of economic cooperation with Russia was a major driver of North Korea's growth last year."

“

Higher weapons exports to Russia boosted related manufacturing, while more Russian tourists and expanded transport links lifted construction and services.

Higher weapons exports to Russia have stimulated related manufacturing sectors. Furthermore, an increase in Russian tourists and expanded transport links have reportedly boosted construction and services. The BoK also reported a significant rise in North Korea's gross national income (GNI), which grew 9.4% to 48.5 trillion won ($33.8 billion). This increase is linked to a sharp rise in foreign currency earnings stemming from the deployment of North Korean troops to Russia.

“

The BoK estimate came as Ukrainian rights group Truth Hounds claimed Russia and North Korea were close to completing their first road bridge, citing their own investigation.