Overview

• At the St. Petersburg Economic Forum, Economy Minister Maxime Rechetnikov warned Russia stands on the brink of recession without corrective measures.
• Official figures show 1.4 percent growth in the first quarter, the weakest pace since early 2023 and a sharp reversal from earlier resilience under sanctions.
• The central bank’s 20 percent policy rate has driven up borrowing costs, leaving an increasing number of businesses financially strained.
• Heavy spending on the military-industrial complex has lost its growth-stimulating effect and is cited alongside tight monetary policy as a drag on the economy.
• A comprehensive economic assessment is scheduled for August when the impact of pending fiscal and monetary measures will be clearer.