Russia sharply downgraded its economic growth forecast for 2026, signaling the government is bracing for a prolonged slowdown as weaker oil revenues, high inflation and heavy wartime spending strain the economy.
Deputy Prime Minister Alexander Novak said the government now expects gross domestic product to grow by just 0.4% next year, down from a previous forecast of 1.3%.
The revised outlook, announced Tuesday, points to mounting concerns inside the government over the durability of Russia’s wartime economic model after more than four years of fighting in Ukraine.
The economy contracted by 0.3% in the first quarter, according to the Economic Development Ministry, even as President Vladimir Putin has urged officials and the Central Bank to accelerate growth.
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