Russian economic growth slowing down, Rosstat reports
Russia's economy is experiencing a sharp slowdown in growth, according to a report released by the governmental statistics agency Rosstat on May 16.
Gross domestic product (GDP) only grew by 1.4% in the first quarter of 2025 – a notable decline from 4.5% growth in the previous quarter and 5.4% in the same period last year, the reported, citing Rosstat data.
The latest data from Rosstat came in below expectations: the Russian Economic Development Ministry estimated GDP growth at 1.7% and Bloomberg analysts predicted 1.8% growth.
According to Egor Susin, an executive from Gazprombank (the third largest bank in Russia, currently under ), Rosstat's data show a "sharp slowdown in the economy."
Compared to last quarter, the economy has already contracted 0.4% – the first such decline since 2022, according to Raiffeisenbank.
Other analysts point to Central Bank policies, sanctions, supply difficulties, and high inflation as reasons for the economy's decline.
Moreover, "the situation is complicated by low oil prices," Raiffeisenbank analysts note, as revenues fell 10% from January to April.
A from the Stockholm Institute of Transition Economics (SITE) also revealed that, despite narratives from the Kremlin, Russia's economy is under increasing strain from its in and Western sanctions.
As Moscow and Kyiv discuss potential peace deals, the Russian economy may face another shock if military spending is reduced. Conversely – if peace talks fail – and the United States may impose additional on Russia, putting further strain on its economy.
Read also: 'Time to increase the pressure' — Zelensky, European leaders speak with Trump following Istanbul peace talks
We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
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