Putin States The Beginning Of The Decline Of Russian Economy Sectors

Even Rosstat recorded problems in the Russian economy.

Russia's economy is experiencing a slowdown in growth and "some imbalances have emerged," Russian dictator Vladimir Putin said at a plenary session of the "Russia Calling!" forum, The Moscow Times reports.

After growing by 4.3% last year, Russia's GDP added only 1% in the first nine months of this year and 0.6% in the third quarter, Putin cited Rosstat statistics. "In a number of industries, output this year has not only not increased, but also decreased at all," the president continued.

According to the IPN RAS, at the end of September, 17 out of 24 sectors of Russian industry, which account for more than 70% of the total output of goods in the country, were in the recession zone. In the third quarter, food production fell by 0.2% year-on-year, clothing - by 5.4%, furniture - by 9.7%. The decline in metallurgy reached 6.9% year-on-year, while the chemical industry fell 0.7%. The production of oil products fell by 3.5% after drone raids on refineries, which affected more than 40 plants across Russia.

Russia is "certainly feeling the external pressure," Putin said: "In a number of sectors, corporate profits have fallen, <�...> and the cost of borrowed funds, bank loans, at the expense of which domestic business has largely financed projects, has objectively increased."

He added that at the end of the year, Russian GDP will grow by 0.5-1%. This is more than twice lower than the government's initial forecast, which promised 2.3% growth and then worsened expectations to 1%.

The Economic Development Ministry's forecast for next year includes 1.3% growth with further acceleration to 2.8% in 2027 and 2.5% in 2028. However, few people share this optimism. The World Bank predicts at least three years of stagnation for Russia: economic growth will not exceed 1% until 2028. Economists at the Center for International Economic Analysis, a think tank close to the government, predict 0.8-1% growth next year and 1-1.5% in 2027-27. And co-founders of the CASE think tank, economists Sergei Aleksashenko, Vladislav Inozemtsev and Dmitri Nekrasov predict stagnation for 10 years - until 2036, when Vladimir Putin's presumed next term as "president" expires.

"If the Russian authorities want the economy to continue to function normally, the special military operation should be scaled back," says Oleg Buklemishev, head of the Center for Economic Policy Research at Moscow State University. The economy's immunity has already been "significantly weakened," he emphasizes: "A systemic crisis may not occur in 2026, but the steady deterioration of economic conditions will continue."

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