• Russia cut its 2026 GDP growth forecast to 0.4% from 1.3% and 2027 to 1.4% from 2.8%, Deputy Prime Minister Alexander Novak said.
  • Novak said the slowdown was expected after robust growth in 2023-24 fueled by military spending for the war in Ukraine.
  • The economy, hit by war, sanctions, and high interest rates, contracted 0.3% in Q1, its first quarterly decline since early 2023.
  • The oil price forecast for budget revenue remains at $59 per barrel in 2026 despite global price spikes due to the Iran conflict.
  • President Putin has asked the government to ensure growth resumes in 2026, and the government is working to return to sustainable long-term growth.

Sources & Links