During a televised meeting with officials, Putin drew attention to: 1.8% GDP growthwhich includes all goods and services produced in the economy, in March alone.
— The measures and decisions that the Russian government has recently taken are beginning to bring some, let's say cautiously, but nevertheless positive results, the president said, without specifying which actions contributed to the increase in economic activity on a month-by-month basis.
He urged his cabinet to focus on “substantial and lasting” growthindicating slight increases in wholesale and retail trade and industrial production.
Despite this, according to the medium-term forecast published last week by the Russian central bank, the economy shrank by 0.5%. on an annualized basis in the period from January to March, marking the first quarterly decline since 2023.
This correction signals that officials are preparing for a longer slowdownas the country grapples with high inflation, labor shortages and budget strains related to the war against Ukraine, which is now in its fifth year. The Central Bank of Russia remains slightly more optimistic, although still cautious, maintaining its economic growth forecast for 2026 in the range of 0.5 to 1.5 percent.
