Russian economy grows 1% in January–August, inflation at 8%
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The Russian economy grew 1% in January–August 2025, with GDP rising 0.4% in August. Inflation in Russia reached 8.01% year-on-year by September 29.
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The Kremlin Wall, the Spasskaya Tower, second left, empty Red Square and St. Basil's Cathedral are seen in an early morning prior to sunrise in Moscow, Russia, on Saturday, August 16, 2025 (AP Photo/Alexander Zemlianichenko)
The Russian economy expanded by 1% year-on-year in January–August 2025, according to data released by the Economic Development Ministry on Wednesday.
The ministry noted that GDP grew by 0.4% in August, matching July’s performance. Over the first eight months of the year, overall GDP growth stood at 1% compared to the same period in 2024.
According to the ministry’s report, Russia’s economy maintained moderate momentum, with monthly growth stable at 0.4%. While the figure reflects resilience, analysts note that external pressures and internal demand constraints continue to weigh on the pace of recovery.
As of September 29, annual inflation in Russia stood at 8.01% year-on-year, the ministry reported. The figure marked a slight increase from the previous week, when inflation was recorded at 7.99%.
Read more: Russia’s GDP exceeds $2.3tn in 2024, almost doubling in 4 years
Inflationary pressures remain a central concern for policymakers, as consumer prices continue to rise across multiple sectors.
Moscow sees economic challenges ahead
While Moscow emphasizes that the Russian economy is showing signs of growth, officials acknowledge the ongoing challenges posed by global market volatility and domestic inflation.
The government is expected to continue balancing economic expansion with price stability in the coming months.
However, despite the Russians' fears, Western analysts have previously stated that the Russian economy is immune to foreign pressures.
An op-ed by The Economist in March last year stated that instead of the Russian economy facing a catastrophic dip, data showed it was instead rebounding after the then two years of war.
Instead of facing a catastrophic downturn, the economy experienced a recession of lesser severity and shorter duration than anticipated. Moreover, while inflation emerged as a recent concern, even prompting worries from Putin himself, recent data suggests a potential stabilization in prices.
Overall, the data suggest that the Russian economy is rebounding once again. A report expected to be published on March 13th indicates a decrease in monthly inflation in February compared to the end of the previous year. Year-on-year inflation rates are projected to stabilize, with forecasts suggesting a potential decrease to just 4%.
