Russia raises 2026 economic growth forecast to 0.6%

The Russian Ministry of Economic Development has raised its economic growth forecast for 2026 by 0.2 percentage points to 0.6%. Alongside this upward revision, the ministry increased its inflation forecast for the remainder of 2026 from 5.2% to 6.8%, citing rising fuel prices as a primary driver. Officials expect inflation to return to a 4% target between 2027 and 2029.

Economic Minister Maxim Reshetnikov stated that the proposed budget framework aims to facilitate monetary easing and restore investment activity. Growth is expected to be driven by domestic demand, with manufacturing sectors such as pharmaceuticals, mechanical engineering (including railway and aircraft production), and electronics projected to grow by approximately 3.5% annually. Additionally, the ministry raised its Brent crude oil price forecast for the year to $85.7 per barrel.