South Korea's central bank estimates that North Korea's economy will grow by 3.5% in 2025, marking the third consecutive year of growth exceeding 3%. Key factors include economic and military cooperation with Russia, increased trade with China, and North Korea's government development projects, while North Korea's per capita national income amounts to only 3.6% of South Korea's.
A report from the Bank of Korea (BOK) states that North Korea's gross domestic product (GDP) in 2025 is projected to expand by 3.5% compared to the previous year, following growth of 3.7% in 2024 and 3.1% in 2023. This has resulted in North Korea's real GDP surpassing the level of 2017, before the United Nations intensified sanctions.
Because North Korea's government considers economic statistics to be top state secrets, BOK has conducted annual assessments of North Korea's economic figures since 1991, relying primarily on intelligence data and international trade statistics.
BOK officials indicate that the continuous economic expansion results from deepening economic cooperation with Russia, increased trade with China, and North Korea's own national policy development projects.
A key growth driver followed the signing of a strategic partnership treaty in June 2024 between North Korea's Supreme Leader Kim Jong Un and Russian President Vladimir Putin. North Korea deployed about 15,000 troops to participate in the Ukraine conflict and supplied weapons and artillery shells to the Russian military.
In return, Russia provided financial support, food, energy, and military technology. Additionally, North Korea's foreign currency earnings surged due to the deployment of its personnel on these missions.
Outstanding growth sectors include mining and creative industries, which rose 4.9% directly benefiting from accelerated arms production for export to Russia. The construction sector expanded by 6.3%, driven by non-residential building projects and infrastructure under government regional development policies, aiming to build modern hospitals in 20 cities and districts annually, as well as cross-border infrastructure like new bridges connecting to Russia.
The agricultural sector grew by 3.6%, and the services sector increased by 1.8%, boosted by a rise in Russian tourists visiting North Korea. Furthermore, North Korea's exports soared by 30% in 2025 to about 470 million US dollars, with major exports including industrial animal fur, wigs, toys, and sporting goods. Economically, mining and industry account for 30.1% of GDP, followed by services at 29.6% and agriculture at 21.2%.
North Korea's gross national income (GNI) in 2025 is estimated at 48.5 trillion won, or approximately 33.79 billion US dollars, representing only 1.8% of South Korea's total national income of 2,717.1 trillion won. North Korea's per capita national income stands at 1.87 million won, merely 3.6% of South Korea's per capita income of 52.57 million won.