Russia is reporting its first contraction in three years, with the authorities already working on measures to restore growth. This was announced by the Kremlin after the publication of preliminary data on the country's economic performance, writes "Reuters".
Kremlin spokesman Dmitry Peskov said that the process was an "expected cooling" of the economy and assured that President Vladimir Putin and the government are developing solutions to reverse the negative trend.
According to data from the Russian Economy Ministry, gross domestic product shrank by about 0.3% in the first quarter of the year - less than expected by a number of analysts. This comes after years of growth, in which the economy expanded by 4.1% in 2023 and 4.9% in 2024, and in 2025 growth slowed to about 1%.
The Russian economy, valued at about $3 trillion, has managed to avoid a serious collapse despite heavy Western sanctions imposed after the start of the war in Ukraine. In 2022, it shrank by 1.4%, but subsequently returned to growth.
According to the Central Bank of Russia, the decline this year is largely due to one-off factors, including a VAT increase at the beginning of the year and heavy snowfalls that slowed the construction sector.
Other government and business representatives point to labor shortages, the slow implementation of new technologies, and the strong ruble, which is putting pressure on exports, as reasons.
Meanwhile, the governor of the central bank, Elvira Nabiullina, called for "honesty" in the presentation of economic data amid accusations from Western intelligence services of possible manipulation.
However, the Kremlin categorically stated that they have "full confidence" in official statistics.