North Korea Sees Strong Economic Growth in 2023 Amid Renewed Trade with China

North Korea's economy surged by 3.1% in 2023 following three years of contraction, driven by increased trade with China and eased COVID-19 border restrictions. Despite ongoing sanctions, industrial and construction sectors witnessed substantial growth, although experts predict the rebound may be temporary.

North Korea's economy has experienced its most significant growth in seven years, expanding by 3.1% in 2023 after three consecutive years of economic decline. This resurgence has been largely attributed to renewed trade with China, following the easing of strict COVID-19 border controls, according to estimates by South Korea's central bank, the Bank of Korea (BOK).

Despite ongoing economic sanctions, North Korea's economic performance improved due to favorable weather conditions and increased industrial output, which jumped 4.9%. The construction sector also saw an impressive growth of 8.2%, with the agricultural sector experiencing a modest increase of 1.0%.

Trade with China accounted for a staggering 98.3% of North Korea's total trade volume in 2023. However, experts caution that the growth may be temporary, although the possibility of expanded economic cooperation with Russia could offer further positive momentum.

(With inputs from agencies.)