North Korea’s economy rebounds as Russia ties fuel arms trade

North Korea’s economy roared back to life as arms transfers with Russia provided support for Kim Jong-un’s regime, allowing the leader to shun diplomacy as he ramped up his threats against the United States and South Korea.

North Korea’s gross domestic product expanded 3.1 per cent in 2023 from a year earlier, ending a three-year streak of contractions and posting the biggest growth since 2016, according to estimates published Friday by South Korea’s central bank.

The growth comes as Kim has drawn closer to Moscow, ignored US calls to return to disarmament talks and rolled back border restrictions imposed at the start of the Covid-19 pandemic that slammed the breaks on trade for his sanctions-hit economy.

The heavy and chemical industries led the economic growth, expanding by 8.1 per cent from a year earlier, the Bank of Korea said.

While the report didn’t say whether those industries engaged in any arms manufacturing, it noted an increase in the production of primary metals, which may include iron, steel, copper, nickel and aluminium.

The BOK annually reports on North Korea’s economy based on data it collects from a variety of institutions, and its numbers are considered some of the best analysis of activity undertaken by its secretive neighbour.

After Russia’s full-scale invasion of Ukraine more than two years ago, the US and South Korea have accused Kim of sending millions of rounds of munitions and scores of ballistic missiles to President Vladimir Putin to help with his grinding war on his neighbour.

Moscow and Pyongyang have denied the accusations despite evidence showing arms shipments taking place. While the exact value of the transfers is not a part of the figures from the BOK, North Korea has received materials for