Russian GDP Growth Confirmed at 1.4%

2025-06-18 16:37 By Andre Joaquim 1 min. read

Russia’s gross domestic product grew by 1.4% in the first quarter of 2025, a significant slowdown from the 4.3% annual expansion in the earlier quarter and in line with the preliminary estimate.

This represented the slowest pace of growth since the economy resumed expansion in second quarter of 2023, showing that the immediate rebound from the crash stemmed by Western sanctions has waned.

Output contracted for professional, scientific, and technical activities (-1.3%), mining (-4%), and the provision of utilities (-3.8%).

On the other hand, growth was seen outperforming other sectors in financial and insurance activities (17.5%) and manufacturing (4.5), while spending in public administration and military security remains robust due to the country's invasion of Ukraine (6.8%).



News Stream
Russian GDP Growth Confirmed at 0.6%
Russia’s GDP grew 0.6% YoY in Q3 2025, the weakest pace since 2023, slowing from 1.1% in Q2, in line with preliminary estimates. The slowdown reflects the Kremlin’s focus on military spending amid the Ukraine war, rather than investments to stimulate the economy, combined with low oil prices, weaker natural gas exports due to European sanctions, muted trade with China, and a strong ruble supported by high Bank of Russia interest rates. Manufacturing growth eased to 1.4% from 3.8%, construction to 1.4% from 2.7%, and hotels & catering to 8.6% from 9.2%. Mining contracted -0.7% (vs -1.2%), water & waste activities -3.6% (vs -3.9%), wholesale & retail -1.1% (vs -2%), transportation -1.7% (vs 0.8%), and real estate -0.7% (vs -0.4%). Agriculture, forestry, hunting, fishing, and fish farming outperformed at 3% (vs 0.8%).
2025-12-12
Russian GDP Slows Further
The Russian GDP expanded by 0.6% in real terms from the previous year in the third quarter of 2025, slowing from the 1.1% expansion in the previous quarter to mark the slowest rate of growth since 2023. The figure was aligned with the IMF's projection that the Russian economy may grow around 0.6% this year, significantly underperforming other emerging markets as the Kremlin's prolonged invasion of Ukraine allocated government spending in the military instead of investments that stimulate the economy. Low crude oil prices, softening natural gas exports due to European sanctions, muted trade with China due to their anti-involution campaign, and a strong ruble amid soaring interest rates by the Bank of Russia also pressured the Russian economy.
2025-11-14
Russian GDP Growth Slows to 1.1% in Q2
Russia’s GDP grew 1.1% in Q2 2025, slowing sharply from 4% a year earlier, preliminary estimates showed. The economy, boosted last year by soaring defence spending despite Western sanctions, now faces cooling growth and rising recession risks. High interest rates aimed at curbing stubborn inflation are weighing on activity. President Putin rejects claims the Ukraine war is crippling the economy, pointing to low debt and diversification. After 4.3% growth in 2024, the central bank expects only 1–2% this year, while the economy ministry may revise its 2.5% forecast.
2025-08-13