Putin Hails 1.8% March GDP Growth as Russia Cuts 2026 Forecast to 0.4%

3 articles · Updated · The Moscow Times · May 15

Russia posted 1.8% GDP growth in March, prompting Vladimir Putin to say recent government stabilization measures are starting to deliver “positive results.”
Putin tied that claim to modest gains in wholesale trade, retail sales and industrial output, while urging officials to pursue “substantial and sustainable” growth.
The upbeat message clashes with broader data: the Central Bank said the economy shrank 0.5% annualized in January-March, its first quarterly contraction since 2023.
Moscow this week slashed its 2026 GDP growth forecast to 0.4% from 1.3%, while the Central Bank kept a slightly higher 0.5%-1.5% range.
The downgrade signals expectations of a prolonged slowdown as Russia faces high inflation, labor shortages and the fiscal strain of the war in Ukraine.

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