Xi's Pyongyang visit shines spotlight on North's growth; Russian and Chinese support blunts impact of sanctions

Chinese President Xi Jinping (left) and North Korean leader Kim Jong-un arrive at the Great Hall of the People in Beijing for a reception marking the 80th anniversary of the end of World War II, in September last year. [Reuters]
Chinese President Xi Jinping (left) and North Korean leader Kim Jong-un arrive at the Great Hall of the People in Beijing for a reception marking the 80th anniversary of the end of World War II, in September last year. [Reuters]

Leading American media outlets are reporting on a boom in North Korea's economy as Chinese President Xi Jinping visits Pyongyang.

The Wall Street Journal declared that "the world's most surprising economic success story right now is North Korea," according to Yonhap News Agency Monday.

Key figures back up the assessment of rapid growth. The Bank of Korea estimated North Korea's real gross domestic product in 2024 at 36.97 trillion won (about $24 billion), up 3.7 percent from 35.65 trillion won the previous year — the largest annual expansion in eight years.

Earlier this year, Kim Jong-un completed the fourth phase of construction in Pyongyang's Hwaseong district in just one year, delivering 10,000 new housing units — more than the number of new homes built in Los Angeles or Chicago over the same period.

Stephan Haggard, a professor at the University of California San Diego who has studied the North Korean economy for decades, said the country's economic strength has reached its peak in roughly 15 years under Kim's rule, surpassing what was achieved under his father, Kim Jong-il.

Haggard acknowledged that Kim has had some luck on his side, but called the results "a remarkable achievement for such a poor country."

The WSJ also reported that foreigners traveling to North Korea have witnessed the transformation firsthand. Rowan Beard, director of Young Pioneer Tours, a travel agency specializing in North Korea, has visited the country more than 100 times. His most recent trip to Pyongyang — his first in several years — left him astonished, he said.

Where he once waited a long time to hail a taxi, his North Korean interpreter this time used a ride-hailing app called Samheung to call one, and the vehicle arrived within minutes.

The New York Times also ran a separate report on North Korea's economic transformation. The paper noted that just five years ago, Kim appeared to be in serious trouble — the COVID-19 pandemic had shut the country's borders and sharply cut trade with China, its main trading partner.

But the Times said North Korea did not revive its economy on its own, crediting the roles played by Russia and China.


20ki@heraldcorp.com