Russia's Central Bank admits Ukrainian strikes will slow economy
Russia's Central Bank has acknowledged the economic impact of Ukrainian long-range strikes on the country, according to a Bank of Russia bulletin titled "What the Trends Show," Interfax reported on Sept. 1.
Russia's Central Bank has admitted that Ukrainian long-range strikes will have a detrimental effect on the country's economy, according to a recent report by Interfax. The bank predicts a slowdown in Russian economic growth for the third quarter of 2026 due to a temporary loss of production and logistics capacity. Despite this, growth in the Russian economy is being driven by military orders, with the consumer sector and parts of the manufacturing industry oriented towards state defense contracts playing a crucial role.
The Central Bank also noted that Russia's GDP growth slowed to 1% in 2025, down from 4.9% in 2024, and that the Ministry of Economic Development had lowered its 2026 growth forecast to 0.4%. Analysts surveyed by Interfax forecast a 2026 GDP growth of 0.5%, which is lower than the previous forecast of 0.7%. International development advisor to Russian President Vladimir Putin, Boris Titov, warned that Russia's economy could spiral out of control if economic management remains solely focused on military-industrial needs.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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