Russia’s economy grows 1.3% in the second quarter amid stronger spending

Friday 14 August 2026 - 19:19

By: Azzat Manal

Russia’s economy grows 1.3% in the second quarter amid stronger spending

Russia’s economy expanded by 1.3% in the second quarter of 2026, supported by government spending, stronger consumer activity and contributions from several key industries, according to Economic Development Minister Maxim Reshetnikov.

The latest figure marks a significant improvement from the 0.2% contraction recorded during the first quarter. As a result, Russia’s economy posted average growth of 0.6% during the first half of the year.

Reshetnikov said the second-quarter performance was stronger than suggested by monthly economic indicators, describing the shift between the two quarters as an early sign of a gradual recovery.

The expansion was supported partly by the use of accumulated financial resources held by households and businesses, as well as the impact of fiscal stimulus. Earlier comments from the minister also pointed to coordinated economic policies with the Central Bank as a factor supporting activity.

Several sectors contributed positively to the performance, including wholesale trade, manufacturing, pharmaceuticals and food production. These sectors have remained important components of domestic economic activity as Russia continues to adjust to changing economic conditions.

Meanwhile, recent inflation data showed signs of easing. According to Russia’s statistical agency, consumer prices fell by 0.06% between August 4 and August 10, following a 0.02% decline during the previous week.

The combination of stronger quarterly growth and a short-term decline in consumer prices suggests that economic activity has gained some momentum while price pressures have moderated. However, the sustainability of the recovery will depend on consumer demand, government policy and developments across major sectors of the Russian economy.