Russian economy posts first quarterly decline in three years

AFP | Moscow

Email: mail@newsofbahrain.com

The Russian economy shrank by 0.2% in the first quarter of 2026, its first quarterly contraction in three years amid mounting strain from the Ukraine war and sanctions, official data showed Friday.

This compares to an expansion of 1.4% between January-March last year, data from Russia’s Rosstat statistics service showed. The Kremlin has spent heavily on its offensive in Ukraine -- outlays that initially boosted economic growth but have driven up inflation and caused labour shortages in non-military sectors of the economy.Earlier this week, Russia slashed its growth forecast for 2026 to 0.4% from 1.3%. Russian President Vladimir Putin said earlier Friday that economic growth had returned in March after two months of contraction.