Story perspectives

Russia Q1 GDP Falls 0.5% Amid Growth Woes

5/9/2026

Summary

Story summary

Russia’s economy contracted in 2026, with GDP down 0.5% year-on-year in the January-March quarter, missing the central bank’s forecast.
Policymakers blamed a VAT increase, adverse weather and three fewer work days.
President Vladimir Putin said those factors were insufficient and urged urgent growth measures.
The central bank is gradually lowering its interest rate after decades of high levels, while borrowing costs have dampened investment and inflation erodes purchasing power.

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Story summary

Russia’s economy contracted in 2026, with GDP down 0.5% year-on-year in the January-March quarter, missing the central bank’s forecast.
Policymakers blamed a VAT increase, adverse weather and three fewer work days.
President Vladimir Putin said those factors were insufficient and urged urgent growth measures.
The central bank is gradually lowering its interest rate after decades of high levels, while borrowing costs have dampened investment and inflation erodes purchasing power.