North Korea's economy grows 3.7 percent in 2024, fastest growth in eight years

North Korea's economy grew 3.7 percent 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 percent rise in GDP in 2023 and a 0.2 percent fall in 2022, the Bank of Korea (BOK) said.

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

"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 percent, 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.

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 percent, the biggest gain since 1999.

The North's trade volume fell 2.6 percent to $2.7 billion in 2024, below that of pre-Covid-19 pandemic levels, but exports climbed 10.8 percent to $360 million, thanks to shipments of wigs and watches.

North Korea's nominal gross national income in 2024 was estimated to be 1.72 million won ($1,239) per capita, equivalent to just 3.4 percent of the South's 50.1 million won.

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.

Reuters