North Korea sees its strongest growth in years

North Korea is showing signs of its strongest economic performance in years, with visitors reporting major changes in the capital city of Pyongyang.

Foreign tourists and diplomats who recently returned to the country described a more modern and connected city, featuring ride-hailing apps, mobile payments, delivery services, electric vehicles, and new commercial developments.

Australian tour operator Rowan Beard, who has visited North Korea more than 100 times, said he was surprised to see locals using a smartphone app similar to Uber to hail taxis and track rides in real time. Restaurants now accept QR-code payments, while smartphone use has become increasingly common.

The economic improvement comes as North Korea deepens ties with Russia and China.

Analysts say arms sales and troop deployments to support Russia’s war in Ukraine have generated billions of dollars for Pyongyang, helping the country recover from its pandemic-era downturn, which was marked by widespread food shortages.

Trade between North Korea and China has reached an eight-year high, providing the country with access to energy, technology inputs, and consumer products despite global sanctions. Chinese President Xi Jinping arrived in North Korea on Thursday, marking his first visit to the country in seven years.

North Korean leader Kim Jong Un has launched a large construction drive, building thousands of new homes, hospitals, factories, and infrastructure projects. Satellite imagery and research reports indicate rising energy consumption, increased vehicle traffic, and brighter nighttime lighting across the country.

South Korea’s central bank estimates North Korea’s economy grew 3.7% in 2024, its fastest expansion in eight years, suggesting Kim’s government has achieved its strongest economic position since he took power nearly 15 years ago.

Despite these gains, challenges remain. The United Nations estimates that nearly half of North Korea’s 26 million people remain malnourished, and living standards outside Pyongyang lag far behind those in the capital. Human rights concerns also continue to draw international criticism.