(Reuters) -Russia’s gross domestic product grew by 1.1% in the second quarter of 2025 compared with 4.0% growth in the same period last year, federal statistics service Rosstat said on Wednesday, another sign that Russia’s economy is slowing.
Soaring defence spending saw Russia’s economy rebound from contraction in 2022 as Western sanctions over the war in Ukraine took their toll, but this year officials have warned of recession risks as the economy cools.
Elevated interest rates for several months, as the central bank seeks to reduce stubbornly high inflation, have hampered Russia’s economic growth prospects.
President Vladimir Putin has dismissed claims that the war in Ukraine is devastating Russia’s economy, citing low debt and economic diversification as signs of resilience.
After GDP growth of 4.3% last year, the central bank forecasts a 1-2% rise this year, while the economy ministry has said it will tweak its current 2.5% forecast.
In late July, the International Monetary Fund raised its outlook for economic growth across emerging market and developing economies this year to 4.1% from 3.7%, driven by frontloading and a more upbeat view on China, but Russia was one of the few exceptions.
According to the IMF, Russia’s economy is now expected to expand by 0.9% this year, compared with its previous view of 1.5% growth.
(Reporting by Darya Korsunskaya; writing by Alexander Marrow; editing by Mark Heinrich)
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