North Korea GDP grows 3.5% in 2025
Analysis based on 6 articles · First reported Jul 31, 2026 · Last updated Jul 31, 2026
The reported growth signals North Korea's economy is benefiting from its alignment with Russia, potentially increasing its resilience to international sanctions. However, the absolute size remains tiny relative to South Korea, limiting direct global market impact, though defense and geopolitical risk perceptions may be affected.
South Korea's central bank, the South Korea — Bank of Korea, estimated on July 31 that North Korea's real GDP grew 3.5% in 2025, marking the third consecutive year of growth above 3%. The expansion was driven by deepened economic and military cooperation with Russia, including weapons exports, increased Russian tourism, and expanded transport links. North Korea's nominal GNI rose 9.4% to 48.5 trillion won ($33.8 billion), still less than 2% of South Korea's. The BoK also reported a 30% rise in exports to $470 million, led by prepared feathers, wigs, toys, and sporting goods. Analysts attribute the growth to Pyongyang's supply of troops and munitions to Russia for its war in Ukraine, in exchange for financial support, food, energy, and military technology. Separately, Ukrainian rights group Truth Hounds claimed Russia and North Korea are close to completing a road bridge, which could facilitate troop and material movement. The BoK noted that North Korea's real GDP has surpassed its 2017 level, when UN sanctions were imposed.
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