Russian economy contracts 0.3% in first quarter of 2026

11 articles · Updated · Reuters · Apr 29

Preliminary data show this is Russia’s first quarterly GDP decline since early 2023, with Sberbank lowering its 2026 growth forecast to 0.5–1% after weak Q1 performance.
The contraction is attributed to the Ukraine war, Western sanctions, high interest rates, a VAT hike, and heavy snowfall, with mining, manufacturing, and retail sectors hit hardest and corporate profits down 33%.
Despite March’s 1.8% GDP growth, officials cite labor shortages and a strong rouble as challenges, while high oil prices and supply disruptions may support future growth; the government is expected to revise its 2026 forecast in May.

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