Russia’s Central Bank Warns Economic Growth Could Slow to Near Zero by Year-End
Russia’s Central Bank has warned that the country’s economic growth could slow to near zero by the end of this year, signaling a deepening stagnation.
Kokcha News Agency – In its updated macroeconomic forecast released on Wednesday, the Central Bank of Russia indicated that the country’s economic growth could slow to near zero by the end of 2025, with GDP growth expected to remain sluggish in the coming years.
The Central Bank noted that GDP growth in the first quarter of 2025 was just 1.4%, a third of the 4.1% growth recorded for the entire year of 2024. While the economy showed some recovery in the second quarter, growing by 1.8%, signs of slowdown reappeared in the third quarter.
According to the Central Bank, growth in the July-September period is expected to be 1.6%, with the final quarter of the year seeing growth of just 0–1%. For 2025, overall growth is projected to be between 1–2%, but by 2026, the economy is expected to slow further, with growth falling to a range of 0.5–1.5%.
Implications of the Slowdown:
The Central Bank’s forecast suggests that Russia is sinking deeper into an economic stagnation, with growth rates significantly lower than previous years. This slowdown reflects ongoing challenges in the Russian economy, including the impact of international sanctions, declining consumer demand, and structural inefficiencies.
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