Russian Economy in “Technical Stagnation”: Sberbank Chief Warns of Zero Growth
Russia’s economic growth has sharply decelerated, entering a phase of “technical stagnation” from April-June 2025, according to Sberbank’s head, German Gref. This slowdown, driven by record defense spending, is hampered by weak private consumption and shrinking civilian investment, with the Central Bank expecting near-zero growth in late 2025. Economy Minister Maxim Reshetnikov noted a concerning trend of underutilized factories and cost optimization, along with a July GDP growth of 0.4%, indicating insufficient demand. High inflation and the Central Bank’s key interest rate are contributing to a challenging economic situation, reflecting the limits of Russia’s war-fueled expansion.
John Q. Hosedrinker