Russian Quarterly GDP Contracts 0.3 Percent

The Russian economy fell by 0.3 percent in the first quarter. This GDP data was presented by the Ministry of Economic Development in a recent report. The figure represents the economic performance for the first three months of the year. A reduction in the number of working days in January and February compared to last year contributed to the decline. Consumption slowed early in the year as households shifted demand to the end of 2025 in anticipation of rate hikes. This shift is described as a transfer of demand to the fourth quarter of 2025. Senior economist at Renaissance Capital, Andrey Milashenko, noted that annual inflation slowed to 5.62 percent. Milashenko stated that while retail and wholesale trade dynamics were excluded from certain growth assessments, February figures showed a decrease. He added that the contraction was mathematically unavoidable despite growth observed in March. Russia reported its first quarterly GDP contraction in three years. Growth slowed significantly in January with a 1.8 percent contraction and February with a 1.1 percent contraction. March saw a 1.8 percent increase, according to the report.