North Korean real GDP expands 3.5 percent on industrial gains
North Korea's real gross domestic product expanded 3.5 percent in 2025, according to Bank of Korea estimates. The economic growth was driven by continued gains in manufacturing and construction along with a recovery in agriculture.
Heavy industry and farming spur expansion
North Korea's economic expansion in 2025 was underpinned by solid performance in key industrial sectors.
Manufacturing output rose 6.6 percent, propelled by a 7.8 percent gain in heavy and chemical industries alongside a 3.8 percent increase in light industry.
The construction sector maintained momentum with a 6.3 percent increase, supported by non-residential building and civil engineering projects.
Agriculture, forestry, and fishing returned to growth at 3.6 percent following a 1.9 percent contraction in 2024.
Conversely, mining growth decelerated sharply to 1.6 percent from 8.8 percent in the previous year, while electricity, gas, and water supply declined 0.4 percent.
Trade rebound and national income gap
North Korea's nominal GNI reached 48.5 trillion KRW in 2025, equivalent to 1.8 percent of South Korea's economy.
Per capita GNI stood at 1.87 million KRW, representing 3.6 percent of the South Korean level.
External trade volume rose 16.0 percent to $3.13 billion.
Exports rose 30.0 percent to $0.47 billion, buoyed by shipments of toys, sports equipment, and wigs.
Imports grew 13.9 percent to $2.66 billion, driven by apparel and fats.
Inter-Korean trade remained at zero.
Growth masking structural divergence
The headline growth highlights North Korea's industrial resilience despite ongoing international sanctions.
Yet relying on South Korean price ratios reveals how speculative these national account estimates remain.
Without structural reform or open trade, such statistical gains offer little real economic progress.