North Korea's economy expanded for a third consecutive year in 2025, according to estimates from South Korea's central bank. The Bank of Korea reported that North Korea's real gross domestic product grew by 3.5 per cent during that year, reaching 38.26 trillion won (US$26.7 billion).
The Bank of Korea, which has published annual estimates of North Korea's economy since 1991 using its own intelligence and trade data, attributed the economic expansion to several factors. These include arms exports to Russia, stronger trade with China, and Kim Jong Un's drive to develop regional industries.
North Korea's gross national income rose in 2025, according to the Bank of Korea.
A Bank of Korea official stated that the expansion of economic cooperation with Russia was a major driver of growth last year. The official also noted that gross national income received a boost from a sharp rise in foreign currency earnings linked to the deployment of North Korean troops to Russia.
Analysts say North Korea has deepened economic and military ties with Russia, supplying troops and munitions for Moscow's war in Ukraine in exchange for financial support, food, energy and military technology. The Bank of Korea reported that higher weapons exports to Russia boosted related manufacturing in North Korea, while more Russian tourists and expanded transport links lifted construction and services.
Ukraine's military intelligence agency stated that more than 7,000 North Korean troops were killed or wounded while fighting alongside Russian forces in the Kursk region during the 2024-2025 campaign.