Russia Cuts 2026 GDP View to 0.0-1.0% as Fuel Crisis Lifts Inflation to 6-7%
Updated
Updated · Euronews · Jul 25
Russia Cuts 2026 GDP View to 0.0-1.0% as Fuel Crisis Lifts Inflation to 6-7%
2 articles · Updated · Euronews · Jul 25
Summary
Russia’s central bank lowered its 2026 GDP growth forecast to 0.0-1.0% from 0.5-1.5% and raised its inflation outlook to 6-7% from 4.5-5.5%.
Fuel prices have surged since mid-May, and Governor Elvira Nabiullina said the supply shock is already feeding through to many goods and services while lifting inflation expectations among households, businesses and markets.
The bank also cut its fourth-quarter 2026 growth projection to 0.0-1.5% year on year, saying companies expect demand to slow and capacity has been temporarily reduced.
Several Russian regions faced fuel shortages in June after Ukrainian strikes on refineries, and fresh drone attacks on Saturday hit sites in Tyumen, Yekaterinburg and Rostov-on-Don.
The central bank expects fuel production capacity to recover by year-end, but analysts warn inflation could run even higher if attacks on energy and logistics infrastructure continue.