Russian Economy Maintains Its Resilience Against New Challenges

Deputy Prime Minister Aleksandr Novak stated that despite the contraction in the first quarter of 2026, the Russian economy showed strong resilience and structural transformations...

Scraper SystemMay 21, 2026, 02:07 PM

The Russian economy contracted by 0.3% in the first quarter of 2026. However, Deputy Prime Minister Aleksandr Novak emphasized that this situation is a natural part of economic cycles and that the economy has a strong resilience reserve. Novak stated that Russia performed above the world average with an annual average growth rate of 3.3% in 2023 and 2024, and that the correction following the high growth experienced during this period was an expected process. He also reminded that the Russian economy is still the world's fourth largest economy according to purchasing power parity.

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Novak stated that economic growth was achieved thanks to increasing domestic demand and import substitution, but ongoing sanctions and external pressures continue to challenge the economy. He said that in an environment where the European Union has implemented 20 sanction packages and is preparing the 21st, Russia is trying to increase its production capacity despite these challenges. Novak noted that the government and the Central Bank are working on various measures to support economic growth, and emphasized that structural reforms and investment incentives will be at the forefront in the upcoming period.

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