Russia's central bank has cut its 2026 GDP growth forecast to a range of 0.0 to 1.0 percent and now expects faster inflation, governor Elvira Nabiullina said. A fuel crisis is driving up prices for a wide range of goods and services across the country.

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Russia’s central bank has slashed its economic growth forecast for 2026, now projecting gross domestic product to expand by only 0.0 to 1.0 percent, down sharply from earlier estimates. Governor Elvira Nabiullina said the bank also expects inflation to accelerate faster than previously anticipated.

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Nabiullina said inflation would accelerate much faster than expected … complicating the bank’s policy balancing act.

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The revised outlook comes as a fuel crisis pushes up prices across the Russian economy, affecting a broad range of goods and services beyond energy alone. Nabiullina pointed to the fuel shortages as a key driver behind the deteriorating price outlook.

The near-stagnant growth forecast underscores the mounting strain on Russia’s wartime economy, which has relied heavily on military spending to offset weakness elsewhere. Persistent inflation pressure could complicate the central bank’s efforts to balance price stability with continued economic support.

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  • Quittenbrot@feddit.orgEnglish
    1·
    1 day ago

    Inflicting economic pain is the only means at our disposal, apart from military intervention, to dissuade them from their belligerent madness.

    I rather have them go broke than us having to actually fight them.