Putin says Russia's 2026 GDP shrinks nearly 2% into recession
Updated
Updated · The New Yorker · May 8
Putin says Russia's 2026 GDP shrinks nearly 2% into recession
7 articles · Updated · The New Yorker · May 8
At a Kremlin meeting with economic officials, he said output had fallen almost 2% so far this year and demanded additional measures to revive growth.
The downturn follows slowing expansion, high inflation, 14.5% interest rates and labour shortages as war spending, recruitment bonuses and emigration distort the economy.
The strain comes as the Ukraine war drags on, drone attacks hit Russian oil infrastructure and political unease grows, though Putin has offered no specific recovery plan.
With Russia's economy collapsing, is President Putin's grip on power finally starting to slip?
As Ukrainian drones strike Moscow, is a paranoid Putin losing control of his security services and the war?
Russia Faces Broad-Based Economic Contraction in Early 2026 Despite Temporary Oil Revenue Surge
Overview
In early 2026, Russia's economy faced a broad-based slowdown, with industrial output growing by just 0.3% in the first quarter and showing declines in January and February. A brief improvement in March, driven by higher budget spending and a windfall of energy revenues linked to the Middle East crisis, offered only temporary relief. Despite this, the overall economic outlook remained weak, as businesses reported falling turnover and major banks lowered growth forecasts. The combination of sluggish industrial performance and reliance on short-term external factors highlighted the deepening challenges facing Russia’s economy.