North Korean leader Kim Jong-un, center, visits munitions factory in North Korea, in this photo released by North Korea's official Korean Central News Agency, July 3. Yonhap

North Korea's economy grew by more than 3 percent last year, rebounding from a contraction for a third consecutive year on the back of steady improvement of the manufacturing sector and trade with its allies Russia and China, a central bank report showed Friday.

The country's economy is estimated to have advanced 3.1 percent last year, following a 0.2 percent contraction in 2022, a 0.1 percent dip in 2021 and a 4.5 percent decrease in 2020, according to the report from the Bank of Korea (BOK).

The manufacturing sector gained 5.9 percent last year, accelerating from a 2.5 percent advance the previous year, and the agriculture industry reported a 1.0 percent rise, turning from the previous year's 2.1 percent dip, according to the BOK.

The service sector also grew 1.7 percent last year, faster than the previous year's 1.0 percent rise.

North Korea's foreign trade stood at $2.77 billion last year, rising from $1.59 billion the previous year on the back of eased cross-border curbs.

The North's exports more than doubled to $330 million in 2023 from $160 million a year ago. Imports stood at $2.44 billion last year, up 71.3 percent over the cited period, the BOK said.

"Despite continued global sanctions, increased trade with China and Russia, along with eased coronavirus restrictions, helped the North's economy rebound," the central bank said.

Bilateral ties between North Korea and Russia have been deepening since last year.

After Russia invaded Ukraine, North Korea has been accused of sending a bulk of munitions and missiles to Russia.

In 2020, the North suffered the worst economic contraction since 1997, as Pyongyang closed its borders over the COVID-19 pandemic.

The country also took a hit from tightened U.N. sanctions over its nuclear and missile programs.

The BOK's annual report is based on data from South Korean institutions specializing in North Korea, which does not publish official economic data. (Yonhap)