Russia’s GDP takes a hit as war drags on

Russia’s economy has taken a significant hit, with its GDP showing a sharp year-on-year decline, according to Rosstat, the country’s official statistics agency.

Officials reported that Russia’s GDP grew by just 1.4% year-on-year in the first quarter of 2025, a steep drop compared to the 4.5% growth recorded in the final quarter of 2024 — a threefold decrease.

Both Russian businesses and consumers have been severely affected by Western economic sanctions, which have been in place since February 2022 following the invasion of Ukraine.

The energy sector, which accounts for around one-third of the national budget, has been particularly impacted. Western sanctions have imposed price caps on Russian oil exports, directly slashing key revenue streams.

Despite the mounting economic pressure, the Kremlin has consistently downplayed the impact of sanctions, insisting that the country remains on a growth trajectory.

However, Western analysts argue that a lack of transparency surrounding Russia’s actual economic situation makes it nearly impossible to assess the true extent of the damage.

(QG - Source: The Daily Express— Picture : © Unsplash)