Russia has revised its 2025 economic growth forecast, cutting the projected annual growth rate from 2.5% to 1.5%. Finance Minister Anton Siluanov informed President Vladimir Putin of this adjustment on August 27, highlighting the country’s struggle to sustain economic growth amidst the ongoing war’s effects. The downward revision underscores the persistent challenges faced by Russia’s wartime economy, which has been struggling to maintain stable growth.
The Russian government’s decision to lower the growth forecast comes amid increasing pressure on the country’s economy due to Western sanctions and the ongoing conflict in Ukraine. These factors have significantly impacted Russia’s trade, energy exports, and overall economic stability. Siluanov’s report to Putin indicates a growing concern within the Kremlin about the nation’s economic trajectory and its ability to meet long-term growth targets.
Analysts suggest that the revised forecast may signal deeper structural issues within Russia’s economy, such as a declining consumer base, reduced foreign investment, and a reliance on volatile energy markets. As the war continues, these economic challenges are likely to persist, further complicating Russia’s efforts to stabilize its domestic and international financial position.