Russia’s Central Bank has issued a warning that the nation’s economy could slip into recession by the end of the year, signaling growing concerns over economic stability. The bank’s analysis suggests that a quarterly contraction would mark the first year-on-year GDP decline since the first quarter of 2023, when the economy shrank by 1.6%. This development has raised alarms among economists and market analysts, who are closely monitoring the situation to assess the potential implications for the Russian economy.
The warning comes against the backdrop of ongoing economic challenges, including sanctions, energy market volatility, and the impact of global inflation. The Central Bank’s forecast underscores the difficulties Russia faces in maintaining economic growth amid these external pressures. As the economy continues to adjust to these conditions, the potential for a recession has become a pressing concern for policymakers and investors alike.