On June 7, the Wall Street Journal reported, based on recent firsthand accounts from foreign visitors to North Korea, satellite imagery, and data from South Korean think tanks, that the North Korean economy is currently experiencing its strongest growth in years — with the Seoul Economic Daily analyzing this as the fastest growth since 2018. The main drivers come from three sources: arms sales (artillery shells, missiles, etc.) and the dispatch of troops to Russia for the war in Ukraine; material and financial support from China; and the continued expansion of imports of energy, parts and raw materials through sanctions loopholes. The changes in Pyongyang are visible to the naked eye: BMW car dealerships, pet shops, and internet cafes stand side by side; restaurants serve brick-oven pizza and fried chicken wings and support QR code payments; ride-hailing apps are available on phones; and electric vehicles have appeared on the streets. Over the past year, more than 10,000 new homes have been built in Pyongyang — a construction volume exceeding the new supply in Los Angeles or Chicago over the same period. North Korea’s elite are described as „wealthier than ever before.“
The article points out that this boom is almost impossible to measure at the official statistical level — North Korea does not submit data to the IMF or the World Bank, nor does it have a freely convertible currency. Economic activity mainly operates through a gray market network denominated in renminbi or dollars, a process of marketization that has deepened since the famine of the 1990s. The timing of the report coincides with Chinese President Xi Jinping’s state visit to North Korea — his first overseas trip this year. The WSJ analysis indicates that North Korea is accumulating greater capacity to devote more resources to construction and economic management while continuing to advance its nuclear weapons and missile programs — meaning the strategic constraining effect of sanctions on the Kim regime is steadily weakening.