Russia cuts 2026 growth forecast to 0.4% amid sanctions
Business
Russia just cut its 2026 growth forecast to 0.4%, a big drop from the earlier 1.3% estimate, as sanctions and war spending keep squeezing its $3 trillion economy.
Deputy Prime Minister Alexander Novak also lowered the 2027 outlook, and longer-term growth is set to stay slow, with only 2.4% expected by 2029.
Russia's economy shrinks in Q1 2026
After two years of wartime-fueled growth, Russia's economy started shrinking again in the first quarter of 2026, hit by higher taxes, discounted oil sales, and tighter financial conditions.
The government is sticking with a $59-per-barrel oil price for its budget plans, but says it needs a "pragmatic and conservative policy" for now.
President Putin wants officials to identify new drivers of expansion.