FX.co ★ Russian GDP Slows Further

In the third quarter of 2025, the Russian GDP grew by 0.6% in real terms compared to the previous year. This marks a slowdown from the 1.1% growth recorded in the prior quarter, representing the sluggish pace since 2023. This growth aligns with the International Monetary Fund's expectation that the Russian economy will likely expand by around 0.6% this year. This rate lags significantly behind other emerging markets, primarily due to the Kremlin's extended military engagement in Ukraine, which has diverted government spending from economic-boosting investments to military expenses. Additionally, the Russian economy faced challenges from low crude oil prices, reduced natural gas exportation arising from European sanctions, diminished trade with China amid its anti-involution efforts, and the impacts of a robust ruble following substantial interest rate hikes by the Bank of Russia.