Kremlin Downplays Sharp Cuts to Russia Growth Forecasts

The Kremlin has downplayed a downgrade in Russia’s economic growth forecasts and gave no indication it planned to penalize officials for weaker economic performance, saying authorities had taken the necessary measures to maintain stability, Dmitry Antonov and Darya Korsunskaya reported for Reuters.

ussian government cut its estimate for gross domestic product growth in 2026 to 0.4% from 1.3%, while its 2027 growth forecast was lowered to 1.4% from 2.8%. (Photo: Ludvig14)

Deputy Prime Minister Alexander Novak presented updated macroeconomic forecasts in an interview with the business daily Vedomosti.

Under the revised projections, the Russian government cut its estimate for gross domestic product growth in 2026 to 0.4% from 1.3%, while its 2027 growth forecast was lowered to 1.4% from 2.8%.

The downgrade came only weeks after Russian President Vladimir Putin publicly criticized top economic officials for slow growth and urged them to develop new strategies to support the economy.

Russia has set a national development target of maintaining economic growth above the International Monetary Fund’s projected global growth rate of 3.1% for 2026.