South Korean Bank Says North Korea's Economy Grew for Third Year in 2025
The Bank of Korea estimates that North Korea's GDP expanded by about 3.5% in 2025, marking a third consecutive year of growth, driven largely by increased arms sales to Russia.
According to the Bank of Korea, North Korea's gross domestic product grew an estimated 3.5% in 2025, representing the third straight year of expansion. Analysts link the improvement to a boost in weapons shipments to Russia and a sharp rise in foreign-currency revenue from its military presence there. Manufacturing sectors, both light and heavy-chemical, expanded by 6.6%, while construction activity increased 6.3% mainly in non-residential projects.
Agriculture, forestry and fisheries rebounded with a 3.6% gain thanks to favorable weather, reversing a prior contraction. Overall trade—exports and imports combined—climbed 16% to $3.13 billion. Despite these gains, North Korea's per-capita gross national income was roughly 1.9 million won, about one-twenty-eighth of South Korea's level.
Why it matters
The growth suggests North Korea's economy is resilient despite sanctions, influencing regional security and trade dynamics.
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