Economic Situation in Russia is Very Complicated

Russia's economy shrinks 1.8% in early 2026 amid labor and resource shortages

The economic situation in Russia today is very complicated due to a number of factors. This was stated by Maxim Oreshkin, the Deputy Head of the Presidential Administration.

Challenges to Economic Growth

Obstacles to economic growth include a shortage of labor and resources, which hinders development. The Deputy Head of the AP believes that the situation in the economy is very complicated. There is a shortage of resources, a shortage of labor, which interferes with economic development. Structural changes are slow, and the introduction of technologies is slow.

Factors Affecting the Economy

According to him, "the figures we see on the negative impact of economic dynamics are not related to Internet restrictions. There are other, much more significant factors that affect the economy," the Deputy Head of the Presidential Administration added.

Economic Forecasts

The Central Bank linked the slowdown of the Russian economy in early 2026 to unfavorable weather conditions and a smaller number of working days, along with adjustments to tax changes. In January and February, GDP decreased by 1.8% - this is lower than expectations of both experts and analysts, as well as the government. The President of Russia, Vladimir Putin, noted at a meeting with government members on April 15 that the minus, in particular, was influenced by processing industries, industrial production in general, and construction.