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Russia's Growth Slashed Amid Budget Deficit and High Rates

8/28/2025

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Summary

Story summary

Russia's economy is expected to grow 1.5% in 2025, revised down from 2.5%, due to high interest rates.
The budget deficit has reached 4.88 trillion rubles ($61.1 billion) due to increased defense spending.
GDP growth slowed to 1.1% in Q2 2025, down from 4.0% the previous year, leading to discussions on tax hikes and spending cuts.

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Story summary

Russia's economy is expected to grow 1.5% in 2025, revised down from 2.5%, due to high interest rates.
The budget deficit has reached 4.88 trillion rubles ($61.1 billion) due to increased defense spending.
GDP growth slowed to 1.1% in Q2 2025, down from 4.0% the previous year, leading to discussions on tax hikes and spending cuts.