Russia GDP Grows 1% in 2025

The Russian gross domestic product expanded by 1% in 2025, loosely in line with market expectations and projections by the economy ministry, but ahead of the IMF's warning that it would drop to 0.6%. Still, the result marked an aggressive slowdown from the 4.9% expansion in the previous year, significantly underperforming other emerging markets as the Kremlin's prolonged invasion of Ukraine allocated government spending in the military instead of investments that stimulate the economy. Low crude oil prices, softening natural gas exports due to European sanctions, muted trade with China due to their anti-involution campaign, and a strong ruble amid soaring interest rates by the Bank of Russia also pressured the Russian economy. Manufacturing output expanded by 3.9%, offsetting the 1.7% decline in that of extractive industries.