Russia's Economic Slowdown Expected to Persist Through Mid-Year
(MENAFN) Russian officials acknowledged Thursday that the nation's economic contraction will persist through mid-year, with meaningful recovery delayed until 2027.
Russian Economic Development Minister Maxim Reshetnikov revealed that Moscow and the central bank collaborated to rein in and decelerate inflation by late 2025. Nevertheless, recent upticks emerged from a value-added tax (VAT) adjustment and escalating food costs in January.
Addressing the State Duma, the parliament's lower chamber, Reshetnikov projected that the country's inflation rate would decelerate following January and trend toward the 4% benchmark, noting that monetary policy interventions require six to nine months before yielding tangible results.
The ministry's earlier projections had anticipated economic stabilization during the year's latter half.
Russia's Central Bank forecasts gross domestic product expansion between 0.5-1.5% for 2026.
The Russian economy has transitioned into a cooldown phase after posting 4.1% growth in 2023 and 4.9% in 2024, before contracting sharply to just 1% last year.
Russian Economic Development Minister Maxim Reshetnikov revealed that Moscow and the central bank collaborated to rein in and decelerate inflation by late 2025. Nevertheless, recent upticks emerged from a value-added tax (VAT) adjustment and escalating food costs in January.
Addressing the State Duma, the parliament's lower chamber, Reshetnikov projected that the country's inflation rate would decelerate following January and trend toward the 4% benchmark, noting that monetary policy interventions require six to nine months before yielding tangible results.
The ministry's earlier projections had anticipated economic stabilization during the year's latter half.
Russia's Central Bank forecasts gross domestic product expansion between 0.5-1.5% for 2026.
The Russian economy has transitioned into a cooldown phase after posting 4.1% growth in 2023 and 4.9% in 2024, before contracting sharply to just 1% last year.
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