Russia boosts DPRK economy with defence orders – Bloomberg
26 July 2024 11:20
According to the estimates of the Central Bank of South Korea released on Friday, the North Korean economy showed significant growth in 2023. The DPRK’s gross domestic product increased by 3.1% year-on-year, the highest since 2016. This growth ended a three-year period of economic contraction, reports "Komersant Ukrainian" reports with reference to Bloomberg.
Experts attribute this economic recovery to the strengthening of ties between Pyongyang and Moscow, particularly in the arms trade. The United States and South Korea accuse Kim Jong-un of supplying Russia with millions of shells and dozens of ballistic missiles to support the war in Ukraine. Although both countries deny these accusations, there is evidence, including from the Ukrainian front, that such supplies are indeed taking place.
The largest growth is observed in the heavy and chemical industries – by 8.1% compared to last year. The Bank of Korea notes an increase in the production of basic metals, which may include iron, steel, copper, nickel, and aluminium. Although the report does not explicitly state whether these industries are related to weapons production, this possibility cannot be ruled out.
North Korea’s rapprochement with Russia comes as Kim Jong-un ignores US calls to return to disarmament talks. Instead, the DPRK leader is stepping up his threats against the US and South Korea. Last month, during Vladimir Putin’s visit to Pyongyang, Kim promised “unconditional support” for Russia’s invasion of Ukraine.
Despite economic growth, North Korea remains one of the poorest countries in the world. According to UN agencies, a large part of the country’s population suffers from a lack of food, medicine and other basic needs. The DPRK’s gross national income per capita is only 1/30 of that of South Korea.
At the same time, Kim Jong-un continues to spend significant funds on his missile programme. According to South Korean Defence Minister Shin Wonsik, last year’s missile tests cost about $1 billion, enough to cover North Korea’s food shortage for a year.
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