Kim Jong Un Steers North Korea To Growth In 2023 After 3 Years Of Decline: Trade With China, Russia Backing Pyongyang's Widest GDP Expansion Since 2016

The economy of North Korea under the leadership of Kim Jong Un has experienced a significant upturn in 2023, following three consecutive years of contraction. This growth has been attributed to increased trade with China, relaxed COVID-19 border controls, and favorable weather conditions.

What Happened: The Bank of Korea reported a 3.1% real-term growth in North Korea’s Gross Domestic Product for 2023, marking the highest percentage increase since 2016, Reuters reported.

Despite ongoing economic sanctions, the North Korean economy expanded due to relaxed COVID-19 restrictions, increased trade with China, and favorable weather conditions.

The BOK official stated that while most experts view the 2023 rebound as temporary, there are also positive factors, such as the potential for further growth in trade with China and an expansion in economic cooperation with Russia.

In 2023, North Korea’s trade with China accounted for 98.3% of the total trade volume. The industrial output saw a 4.9% increase, the fastest in seven years, led by the production of metal items and wigs. The construction sector also experienced significant growth, increasing by 8.2%, the most significant growth since 2002, due to increased housing projects.

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Why It Matters: North Korea’s economic resurgence comes amid a series of geopolitical maneuvers and domestic challenges. In January, Kim Jong Un bolstered the economy by selling arms and missiles to Russia, aiding its activities in Ukraine.

Additionally, North Korea’s relationship with South Korea remains tense. Just a day before the economic growth report, North Korea launched around 500 trash-filled balloons into South Korean airspace, causing flight disruptions and a rooftop fire. This act is part of an ongoing propaganda campaign against defectors and activists in South Korea.

Moreover, North Korea dismissed former President Donald Trump‘s claims of a friendly relationship with Kim Jong Un, emphasizing their readiness for nuclear confrontation amid rising tensions with the U.S.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote