Russia’s economic growth slows to 1.1% in Q2 amid war pressures

Published 14/08/2025, 11:12
Russia’s economic growth slows to 1.1% in Q2 amid war pressures

Investing.com -- Russia’s economic growth slowed to 1.1% year-on-year in the second quarter of 2025, down from 1.4% in the first quarter, suggesting the economy narrowly avoided a technical recession.

The Q2 figure came in slightly above some expectations of 1.0% but below the Bloomberg consensus forecast of 1.5%. This marks a continued cooling of the Russian economy, which is facing mounting pressures from imbalances related to the ongoing war effort.

While Rosstat did not release seasonally-adjusted figures, estimates indicate the year-on-year data translates to modest quarterly growth of approximately 0.3%, following an estimated 1.5% quarter-on-quarter contraction in Q1.

Industrial production showed relative resilience during the second quarter, growing at 1.8% year-on-year, which likely helped offset weakness across other sectors of the economy.

Economic analysts project further slowing of growth in the coming quarters as the Russian economy continues to struggle with structural challenges stemming from the war.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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