Russia\u2019s economy is experiencing a natural slowdown after a robust growth, and it is a result of policy tightening, with high interest rates in Russia increasing the cost of borrowing and Russia planning to raise taxes to finance its budget.\u00a0<\/p>\n
The decrease of Russia\u2019s economic growth also impacted the overall forecast for emerging economies.\u00a0<\/p>\n
\u201cGrowth in emerging and developing Europe is projected to decline substantially, from 3.5% in 2024 to 1.8% in 2025, and to recover modestly to 2.2% in 2026,\u201d the World Economic Outlook says. \u201cThis is driven mainly by a sharp drop in the growth forecast in Russia\u201d.<\/p>\n
The downgrade reflects a concentration of Russia\u2019s fiscal spending in the last quarter of 2024, which boosted last year\u2019s GDP to 4.3% from 4.1%.<\/p>\n
Global oil prices fell 5.4% between March and August 2025 as weak demand and rising supply from OPEC+ and non-OPEC+ countries pushed prices down, reducing Russia\u2019s oil revenues, the World Economic Outlook says.<\/p>\n
Non-OPEC+ supply is expected to rise by 1.4 million barrels per day in 2025, while OPEC+ production increased 2.5 million barrels per day ahead of schedule. Falling prices and higher production continue to pressure Russia\u2019s fiscal revenues and economic growth. Global oil demand is projected to grow by 0.7 million barrels per day next year, which may partially offset these losses.<\/p>\n
<\/p>\n <\/a><\/p>\n Other Topics of Interest<\/p>\n MI5 Chief: UK Confronting Growing Threat From Russia, Iran, China<\/a><\/p>\n Director General Ken McCallum said his agency had thwarted a \u201cstream of surveillance plots with hostile intent\u201d from Russia and warned of a 35% rise in individuals investigated for state threats.<\/p>\n Despite slowing economic growth, Russia\u2019s agricultural sector benefited from strong harvests in 2025, pushing cereal prices down 11.1%.<\/p>\n \u201cCereal prices dropped by 11.1% amid strong harvest prospects in major producing countries, such as the United States, Russia, Brazil, and Argentina,\u201d the IMF World Economic Outlook says.<\/p>\n Russia traded economic growth for the fourth year of its full-scale war in Ukraine <\/p>\n Russia is running out of the resources that have provided its economic growth for the past two years following the full-scale invasion of Ukraine, the head of the Central Bank of Russia, Elvira Nabiullina, said during the St. Petersburg International Economic Forum on June 19<\/a>.<\/p>\n In 2022, the year the full-scale war began, Russia\u2019s economy shrank by 1.4%. It rebounded afterward, outpacing the G7 average with growth of 4.1% in 2023 and 4.3% in 2024.<\/p>\n This year, the Economy Ministry projects that growth will slow sharply to just 1.0%, though Russian President Vladimir Putin described this as \u201cdeliberate.\u201d<\/a><\/p>\n![\"MI5](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2025\/10\/dffafc9c1f3d1486fb0f2a49197576c5.jpg\")
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