Key insights
- Putin claims Russian economic measures are working, citing positive March GDP data. However, the Economy Ministry has lowered GDP growth forecasts for 2026 and 2027. This indicates potential long-term economic challenges for Russia, which could indirectly impact global markets through commodity prices and geopolitical stability, presenting a slightly bearish signal for US equities.
MOSCOW, May 15 (Reuters) - Russian President Vladimir Putin said on Friday that measures undertaken by the government to boost the economy were beginning to yield positive results, after Moscow was forced to slash its economic growth forecast for this year.
Economic data for March was positive, with gross domestic product (GDP) up 1.8%, Putin told a televised meeting of government officials. Despite March growth the economy contracted by 0.3% in the first quarter.
Fresh forecasts this week by Russia’s Economy Ministry lowered estimates for gross domestic product (GDP) growth in 2026 to 0.4% from 1.3% and cut estimated growth in 2027 to 1.4% from 2.8%. Growth was expected to reach 2.4% in 2029.