Russia arms deal revives North Korea’s economy from decline

North Korea, the world’s most isolated state, is anticipated to return to growth with an approximate 1% increase in 2024, thanks to its arms sales to Russia – as reported by DW.

South Korea’s top spy agency believes North Korea has sent more than 1 million artillery shells to Russia since August for use in the war on Ukraine, according to lawmaker Yoo Sang-bum, who attended a closed-door intelligence briefing on November 1 said South Korean National Intelligence Service. 

In early January 2024, it was revealed that Russia began receiving ballistic missiles from North Korea, using the first North Korean ballistic missiles in attacks on December 29 and January 2.

The agreements between North Korea and Russia are secret, and both sides deny them.

However, while these deals are described as an “act of desperation” for Russia, they are considered a “mega-deal” for North Korea, DW analyst Anvita Basu from Fitch Solutions said.

The total value of the sold munitions is estimated to be several billion dollars, a significant amount for North Korea’s small economy (valued at just $24.5 billion).

“The economy [of North Korea] has been shrinking over the last five years. Therefore, the arms deal with Russia will help it return to growth, approximately 1% in 2024,”

said Anvita Basu from Fitch Solutions

She said that her forecast is speculative, as North Korea does not disclose economic data. Most statistical information has to be gathered from the central bank of South Korea and North Korea’s trade partners.

North Korea is totally breaking with the South

The actions of Kim Jong-un and the ruling party in North Korea indicate that the country has set a course for a final break with the South and the West in general.

In addition to previous measures (destruction of the statue of the unification of the two Koreas in Pyongyang, removal of words such as “unification”, “reunification” from the Constitution, dissolution of specialized organizations), Kim also decided to destroy the railway connection between the North and the South.

The main reasons are considered to be the improvement of the situation in the country in connection with cooperation with the Russian Federation and the desire to suppress liberal sentiments coming from the West. The actions of the regime may be a manifestation of a regular desire to suppress the people and further subjugate them. However, the fact is the fact: North Korea is closing itself off from the world. It is not known just how strong and how long.

Total
0
Shares
Related Posts