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"Most experts assess the rebound in 2023 to be temporary, but there are also positive factors, such as the possibility of further growth in trade with China and expansion in economic cooperation with Russia," a Bank of Korea official told reporters, quoted by Reuters.
The latter point refers to ties that have formed between North Korean and Russian leadership. As Western sanctions have amassed against both countries due to their geopolitical hostilities, the two powers have instead turned to one another.
Last month, Korean leader Kim Jong Un and Russian President Vladimir Putin signed a new mutual defense pact, expanding economic and trade cooperation.
It amplifies a pivotal arms trade relationship that's formed between Pyongyang and Moscow through 2023, despite Western concerns.
The US first accused North Korea of providing ammunition to Russia in September 2022, a move that has helped Moscow maintain its war in Ukraine. This lifeline has only deepened -- while ammo delivery estimates vary, they're likely to number in the millions.
Both countries have denied that arms shipments are occurring.
For its contribution, the new partnership has earned North Korea food and economic materials, and these have likely stabilized prices and boosted manufacturing. Data showed that industrial output expanded by 4.9%, notching a seven-year high.
Growth was also spurred by easing COVID restrictions, improving trade with China, and good weather conditions, the bank official told reporters.
The Bank of Korea highlighted increased trade volumes, which rose 74.6% in 2023 to $2.77 billion.
