By Ju-min Park

North Korea’s economy grew 3.7% in 2024, the fastest annual pace of growth in eight years, backed by expanded economic ties with Russia, according to estimates by South Korea’s central bank released on Friday.

Economic growth in North Korea last year picked up from a 3.1% rise in gross domestic product in 2023 and a 0.2% fall in 2022, the Bank of Korea (BOK) said

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The 2024 figure marked the highest growth rate since 2016, when the economy expanded 3.9%.

“It is mainly due to significant increases in manufacturing, construction and mining industries, which were affected by strengthening of national policy projects domestically, and expansion of economic cooperation between North Korea and Russia externally,” a BOK official told a briefing.

In particular, the heavy chemical sector soared 10.7%, the highest rate since records began, helped by expanded production of metal products for weapons exported to Russia, the official said.

The BOK’s estimates are considered among the most reliable indicators of economic activity in the North, which does not publish official data.

North Korea and Russia have become closer militarily and economically, and Pyongyang has sent an unprecedented number of armaments and troops to support Russia in its war against Ukraine.

Item 1 of 2 North Korean leader Kim Jong Un tours a production facility in Songchon County, North Korea, December 20, 2024 in this photo released by North Korea’s official Korean Central News Agency. KCNA via REUTERS/ File Photo

[1/2]North Korean leader Kim Jong Un tours a production facility in Songchon County, North Korea, December 20, 2024 in this photo released by North Korea’s official Korean Central News Agency. KCNA via REUTERS/ File Photo Purchase Licensing Rights, opens new tab

Leader Kim Jong Un will visit China, North Korea’s major ally and economic lifeline, to attend a military parade in what is likely to be the biggest multilateral diplomatic event that the reclusive state’s leader has attended.

Russian President Vladimir Putin will also be at the parade.

The data showed the mining sector also grew 8.8%, the biggest gain since 1999.

The North’s trade volume fell 2.6% to $2.7 billion in 2024, below that of pre-COVID pandemic levels, but exports climbed 10.8% to $360 million, thanks to shipments of wigs and watches.

 

The BOK has been publishing its estimates of the North Korean economy since 1991, based on information from various sources including intelligence and foreign trading agencies and data from the South’s unification ministry.

The South Korean central bank released the estimate a month later than in previous years because there was a delay in collecting raw data.

($1 = 1,388.1500 won)

Reporting by Ju-min Park; Editing by Ed Davies

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