North Korea’s economy sees biggest boom since Kim Jong Un took power... “Russia-driven windfall to last another 2–3 years”

[Financial News] A U.S. expert has concluded that North Korea is enjoying the most favorable economic conditions since Kim Jong Un took power, buoyed by military cooperation with Russia and other factors. Even if the war in Ukraine ends, Russian demand for rearmament could sustain North Korea’s income for the time being, but analysts warn that long-term growth will be limited unless structural problems such as energy shortages are addressed.
Troy Stangarone, a U.S. expert on the Korean Peninsula’s economy, said at the North Korea Economic Forum held at The George Washington University in Washington, D.C., on the 23rd (local time), “This is clearly the best period since Kim Jong Un took power, and perhaps even the best period of his life.”
He cited expanded cooperation with Russia stemming from the war in Ukraine, economic cooperation with China, and increased income from cybercrime as factors behind the North Korean economy’s boom. He said these factors may have combined to leave North Korea with more funds now than it could earn over the next several years.
He predicted that income generated through cooperation with Russia would not decline immediately even if the war in Ukraine ends, since Russia may begin rearming to replenish its depleted military forces after the war is over.
Stangarone said, “I don’t think income from Russia will necessarily decline even after the war ends, because Russia will want to rearm,” adding, “North Korea can probably continue earning money for another two to three years or so.” He nevertheless expected this income to decline from a certain point onward.
He also raised the possibility that North Korea’s actual economic growth rate was higher than previous estimates. The Bank of Korea estimated that North Korea’s economy grew by 3.5% last year. Stangarone said that even if the funds flowing in from Russia were only about half the previous estimate, they would have had a considerable impact on North Korea’s economy, suggesting that actual growth may have been higher.
The question is whether a temporary increase in foreign-currency earnings can strengthen the economy’s fundamentals. Stangarone stressed that it was important for Kim to use the current favorable external environment to build a sustainable economic structure.
He identified chronic energy shortages as a key constraint. Even if North Korea builds new factories and pursues industrialization, production growth will be limited if it lacks enough electricity to operate its facilities.

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