North Korea's Economic Surge: A Year of Growth Fueled by Russian Ties
North Korea's economy surged by 3.7% in 2024, marking the fastest growth in eight years. Enhanced economic ties with Russia and increases in manufacturing, construction, and mining industries contributed to this growth. The heavy chemical sector notably soared by 10.7%, with expanded metal product production for export to Russia.
North Korea has reported its fastest annual economic growth in eight years, with a significant 3.7% increase in 2024, driven by strengthened economic ties with Russia. This marks a notable recovery from a 3.1% rise in 2023 and a 0.2% decline in 2022, according to South Korea's central bank estimates released this Friday.
The growth is attributed to substantial developments in manufacturing, construction, and mining, bolstered by both national policies and external cooperation with Russia. The heavy chemical sector experienced record growth, soaring 10.7%, primarily due to increased production of metal products exported for weaponry to Russia, as highlighted by a Bank of Korea official.
Despite challenges, such as a 2.6% fall in trade volume, exports rose by 10.8%, thanks to the shipment of goods like wigs and watches. North Korea's nominal gross national income per capita remains significantly lower than South Korea's, but the BOK relies on various sources to estimate economic activity in the secretive state.
(With inputs from agencies.)
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