The Central Bank of Russia attributed the economic downturn to bad weather
The Central Bank of the Russian Federation stated that unfavorable weather conditions were one of the reasons for the economic slowdown in early 2026.
This is stated in the regulator’s commentary on the decision regarding the key rate.
The Central Bank cut the rate for the eighth consecutive time—from 15% to 14.5%. At the same time, the agency acknowledged that the economy slowed in the first quarter.
According to Rosstat, Russia’s GDP in January–February contracted by 1.8% year-on-year—the first decline since 2023.
Industry also found itself on the brink of recession: production declined in January and February, but showed slight growth in March—0.3% year-on-year.
The Central Bank attributed the situation to several factors, including tax changes, fewer working days, and unfavorable weather.
After three years of unexpected economic growth, Russia is facing a sudden slowdown—war costs, inflation, and falling oil prices have begun to weigh on an economy that until recently seemed resilient to sanctions.
Consumer lending in Russia has fallen to a six-year low.
