North Korea’s economy is showing signs of recovery amidst the strengthening of Pyongyang’s ties with Russia and China, according to a report from the South Korean Ministry of Unification released today.
Rigid planning and high military spending have historically hampered the country’s growth, which is subject to heavy international sanctions aimed at curbing its nuclear program. China remains Pyongyang’s primary economic supporter, while relations with Moscow have also tightened significantly since the start of the Russian invasion of Ukraine in 2022.
According to the report, these links are improving the country’s economic outlook, which appears to have “surpassed a period of contraction” and “entered a phase of progressive recovery.” Air China resumed direct flights between Beijing and Pyongyang in March after a six-year suspension, and daily rail connections have also been re-established.
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Several analysts suggest that North Korea is receiving economic and technological support from Russia in exchange for deploying troops to the conflict in Ukraine. Parallel to this recovery, Pyongyang continues to pursue its nuclear and ballistic programs, ignoring international pressure.
While the country does not release official gross domestic product data, Seoul estimates that nominal GDP reached approximately 30 billion dollars (about 28 billion euros) in 2024. In February, North Korean leader Kim Jong Un committed to improving the population’s standard of living, stating that the country has overcome the “worst difficulties” of the last five years and entered a phase of “optimism and confidence in the future.”
