FX.co ★ Russian GDP Growth Confirmed at 0.6%

Russia's GDP experienced a year-on-year increase of 0.6% in the third quarter of 2025, marking the slowest growth rate since 2023, and decelerating from a 1.1% rise in the second quarter. This aligns with earlier estimates. The deceleration is attributed to the Kremlin’s prioritization of military expenditures amidst the ongoing Ukraine conflict, over economic stimulus investments, coupled with suppressed oil prices, decreased natural gas exports due to European sanctions, subdued trade relations with China, and a robust ruble bolstered by elevated Bank of Russia interest rates. Manufacturing growth moderated to 1.4% from 3.8%, construction decreased to 1.4% from 2.7%, and the hotels and catering sector slowed to 8.6% from 9.2%. Conversely, the mining sector contracted by -0.7% compared to a previous -1.2%, water and waste activities declined by -3.6% versus -3.9%, wholesale and retail dropped by -1.1% compared to -2%, transportation contracted by -1.7% versus a growth of 0.8%, and real estate fell by -0.7% from -0.4%. Outperforming these sectors, agriculture, forestry, hunting, fishing, and fish farming surged to 3% from a previous 0.8%.