Russia’s first economic dip in 3 years was 'expected' – Peskov
Kremlin spokesman Dmitry Peskov and Vladimir Putin leave the building after a direct line on December 19, 2025 (Photo: Sputnik/Mikhail Metzel/Pool via REUTERS)
Kremlin spokesman Dmitry Peskov said Russia’s first quarterly economic contraction in three years was “expected” and tied to measures to ensure stability, The Moscow Times reported on Apr. 30.
“This is an expected process. The expected cooling of the economy has taken place, but it has its results. All of this is aimed at ensuring macroeconomic stability, but some decline may occur, and it is happening,” he said. “The government and the president are taking measures and developing solutions to reverse this negative trend into growth.”
According to Russia’s Economic Development Ministry, GDP shrank by 0.3% in January–March, the first contraction since the first quarter of 2023, when the economy declined by 0.8%.
Output in non-resource industrial sectors fell by 0.7%, construction volumes dropped by 10%, freight turnover declined by 3.4%, and wholesale trade decreased by 0.5%.
The Russian government forecasts GDP growth of 1.3% this year, only slightly above last year’s result, when the economy slowed nearly fivefold and expanded by just 1%, the report said.
As reported, Russia’s economy ended the first quarter of 2026 in contraction, marking the first quarterly GDP decline since early 2023 and erasing about a third of last year’s growth.
Economic pressures driven by the war and sanctions have also affected the financial stability of Russia’s regions.
By the end of 2025, the combined deficit of regional budgets had increased 3.6 times year on year to 1.478 trillion rubles.
More than half of large Russian companies ended 2025 with declining profits, cut back or froze investment projects, and many are preparing layoffs.
In February, reports said about 300 companies in Russia were preparing to shut down.
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