North Korea is experiencing a notable economic recovery, largely attributed to enhanced trade and diplomatic relations with Russia and China, according to a report released by South Korea’s unification ministry on Friday.
Economic challenges and evolving partnerships
For years, North Korea’s economic growth has been hindered by stringent socialist policies and substantial military expenditures, alongside international sanctions designed to impede its nuclear weapons development. Historically, China has served as the primary economic supporter for the isolated nation, but the dynamics have shifted since North Korea’s increasing collaboration with Russia, particularly following Moscow’s full-scale invasion of Ukraine in 2022.
The South Korean ministry’s report indicates that these evolving partnerships are contributing to a positive economic outlook, revealing that North Korea appears to have “moved beyond a period of contraction” and is “entering a phase of gradual recovery.” This revival occurs concurrently with North Korea’s persistent development of its nuclear and missile programs, which the regime has pledged to maintain despite enduring global pressure.
Resumption of trade and travel
The report also outlines South Korea’s strategy for engaging with North Korea through the end of the decade, emphasizing that Pyongyang’s increasing collaboration with Russia and enhanced trade conditions with China are critical elements of this recovery. Significant developments include the resumption of direct flights between Beijing and Pyongyang by Air China in March, after a six-year hiatus, as well as the reestablishment of daily passenger rail services connecting the two capitals.
During a visit to Pyongyang last week, China’s foreign minister expressed a desire to further “promote practical cooperation.” Analysts suggest that North Korea is not only benefiting economically but is also receiving military technology support from Russia in exchange for deploying troops and supplying ammunition for the conflict in Ukraine.
Although North Korea does not release official statistics regarding its economic performance, estimates from Seoul indicate that its nominal gross domestic product was roughly $30 billion (€25 billion) in 2024—a fraction of South Korea’s advanced economy. The country has long grappled with severe shortages, with a devastating famine in the mid-1990s resulting in the loss of hundreds of thousands of lives. Reports have also indicated that the COVID-19 pandemic exacerbated food insecurity, pushing many citizens into extreme hunger.
In a recent congress, North Korean leader Kim Jong-un asserted a commitment to improving living standards, claiming that the nation had overcome its “worst difficulties” over the past five years and is now entering a period of “optimism and confidence in the future.”