Russia’s economy has slowed elevenfold - Ukraine's Center for Countering Disinformation
Photo: Russia’s economic growth has virtually come to a halt (Getty Images)
The Russian government has acknowledged that economic growth has come to a halt. Over six months, growth rates have dropped elevenfold, and entire sectors have already slipped into recession, with even the defense industry losing momentum, the Center for Countering Disinformation (TsPD) reports.
As of July 2025, the country’s GDP grew by only 0.4% year-on-year. This indicates that the economy is on the verge of stagnation.
For comparison, in June of this year, the figure was 1%, and in December 2024, it was 4.5%. Thus, over just six months, growth rates have declined elevenfold.
Industry is on the verge of zero
The state of the industry shows a critical slowdown. Sectors that still showed positive growth last year are now sliding into recession.
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Furniture production has fallen by 12%
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Clothing production by 7%
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Electrical equipment by 6.5%
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In metallurgy, the decline has exceeded 10%.
These figures indicate that Russia’s industry is effectively hovering around zero growth.
Defense industry losing momentum
Even the military-industrial complex, which the Kremlin considers critically important during the war, is failing to maintain growth.
Growth in the production of metal goods and electronics has slowed by 3.5–5 times. This shows that even the defense sector, which for a long time remained the locomotive of the Russian economy, has begun to lose momentum.
"Reserves to 'fuel' Russia’s economy are running out. To continue financing the war, the authorities will be forced to raise taxes and take resources from the civilian sectors, which will further slow development. The war and sanctions are pushing the Russian economy into a prolonged crisis," the Center for Countering Disinformation emphasizes.
'Putin’s economy' is heading into the abyss
Oil revenues have fallen, and the budget deficit reached 4.9 trillion rubles in July — the highest level in over 30 years.
Inflation has exceeded 10%, and the key interest rate has risen to 21%—the highest in two decades.
Banks have bet on the war. As a result, many banks are earning less than they pay on deposits and loans.
Earlier, Reuters, citing sources, reported that Putin is increasingly concerned about the state of the Russian economy amid the war.
