Russia's economy slows to 0.1% growth: industry falls for the first time in 9 months

State of the Russian Economy in 2025

According to ХВИЛЯ: The Russian economy is showing a critical slowdown in growth, which in November 2025 dropped to 0.1%. This figure is the worst since the beginning of 2023. At the same time, industrial production has experienced a decline of 0.7% for the first time in nine months. This situation raises concerns among economists and analysts, who note that it may lead to a further deterioration of the economic situation in the country.

High Inflation and Recession

The Central Bank of the Russian Federation's key interest rate in 2025 exceeded 23-25%, indicating a high level of inflation and increasing financial difficulties for consumers and businesses. Experts point to the possibility of a recession in 2026, which could exacerbate already existing problems in the economy.

Among the main factors that influenced these results, three fallen pillars can be highlighted:

• budget pumping
• import substitution
• forced lending

These factors have caused stagflation in the country, characterized by a combination of meager GDP growth, high inflation, and declining industrial production. Under these negative trends, the future of the Russian economy looks quite uncertain.

The situation in the Russian economy indicates serious structural problems that require urgent resolution. High inflation and declining industrial production threaten the financial stability of the country, which may lead to a decrease in the standard of living of the population. If negative trends continue to intensify, a recession in 2026 may become a reality, necessitating effective measures from the government to stabilize the economic situation.