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last mo.

Putin Plays Down Economic Strain at Saint Petersburg Forum

Official figures showing a Q1 GDP drop and a large early-2026 budget shortfall raise the prospect that Moscow will need to tap its sovereign fund to cover costs.

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«Nous nous sentons en confiance», a balayé Vladimir Poutine, interrogé sur la crise économique que traverse la Russie.
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Overview

  • President Vladimir Putin spoke at the Saint Petersburg Economic Forum on Friday and described Russia's economic dynamic as “moderate” while highlighting low public debt.
  • Official statistics show Russia's GDP contracted by 0.2% in the first quarter of 2026, the first quarterly decline in three years.
  • Russia reported an $80 billion budget deficit in the first four months of 2026, a shortfall larger than expected that tightens near-term financing needs.
  • The government reports public debt near 15–16% of GDP and a sovereign wealth fund of about €156 billion, giving Moscow a buffer it can use instead of foreign borrowing.
  • Analysts warn that Western sanctions, high borrowing costs, war spending and possible manipulation of official data could mean the real economic pain for households and small businesses is deeper and may force more tax hikes or asset sales.