Aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed growth
The Russian economy remains fundamentally strong despite contracting in the first quarter of 2026, Deputy Prime Minister Aleksandr Novak has said, citing low unemployment, rising household incomes and improving business activity as evidence that the slowdown may be temporary.
Russia’s GDP shrank by 0.3% year-on-year in the first quarter, marking the country’s first quarterly contraction since early 2023. The slowdown followed years of rapid expansion, with the economy having grown by over 4% in 2023 and 2024 before easing to around 1% last year.
Novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle. “After a period of high growth, there is always a correction,” he said, describing the current phase as being accompanied by “structural transformation” under “unprecedented pressure from sanctions.”
Russia has retained its position as the world’s fourth-largest economy by purchasing power parity (PPP) – which adjusts for cost-of-living differences across countries – since 2021, Novak said. Manufacturing output has risen nearly 23% since 2022, he added, driven by import substitution and increased domestic production after many Western companies exited the Russian market.
The deputy prime minister also cited historically low unemployment and rising household incomes as signs of economic stability. Real disposable incomes had increased by 26.1% over the past three years, driven by wage growth, social payments, business income and property income, he stated.
“Poverty has declined to a record low of 6.7%,” Novak said, referring to the 2025 data. He said unemployment was expected to remain at around 2.3-2.4%, among the lowest levels in the country’s modern history.
Novak attributed the slowdown partly to labor shortages and tight monetary policy aimed at curbing inflation, but said growth was expected to return this year as price pressures ease and financial conditions gradually improve.
Novak’s views were echoed by Economic Development Minister Maksim Reshetnikov, who told President Vladimir Putin on Tuesday that the economy had “held up well” despite sanctions and external pressure. The ministry expects GDP growth to reach 0.4% this year before accelerating to 1.4% in 2027, Reshetnikov said.
15 thoughts on “Russian economy on solid footing despite slowdown – deputy PM”
On one hand novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle. But at the same time russia has retained its position as the world’s fourth-largest economy by purchasing power parity (PPP) – which adjusts for cost-of-living differences across countries – since 2021, Novak said.
Novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle. Meanwhile russia has retained its position as the world’s fourth-largest economy by purchasing power parity (PPP) – which adjusts for cost-of-living differences across countries – since 2021, Novak said.
Considering novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle, it raises some real questions about what happens next.
The bigger issue here is aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed. That changes the calculation.
When you look at aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed, the implications are hard to ignore.
If novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle, then the bigger picture starts to look very different.
If the deputy prime minister also cited historically low unemployment and rising household incomes as signs of economic stability, then the bigger picture starts to look very different.
What stands out is aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed. That is the part worth paying attention to.
Considering russia’s GDP shrank by 0.3% year-on-year in the first quarter, marking the country’s first quarterly contraction since early 2023, it raises some real questions about what happens next.
Think about it: russia’s GDP shrank by 0.3% year-on-year in the first quarter, marking the country’s first quarterly contraction since early 2023. That speaks volumes.
Russia has retained its position as the world’s fourth-largest economy by purchasing power parity (PPP) – which adjusts for cost-of-living differences across countries – since 2021, Novak said. Meanwhile the deputy prime minister also cited historically low unemployment and rising household incomes as signs of economic stability.
Reading that russia’s GDP shrank by 0.3% year-on-year in the first quarter, marking the country’s first quarterly contraction since early 2023 — hard to argue with the logic there.
On one hand novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle. But at the same time russia has retained its position as the world’s fourth-largest economy by purchasing power parity (PPP) – which adjusts for cost-of-living differences across countries – since 2021, Novak said.
The fact that aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed really puts things into perspective.
Novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle. Meanwhile russia has retained its position as the world’s fourth-largest economy by purchasing power parity (PPP) – which adjusts for cost-of-living differences across countries – since 2021, Novak said.
Considering novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle, it raises some real questions about what happens next.
The bigger issue here is aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed. That changes the calculation.
When you look at aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed, the implications are hard to ignore.
If novak told business daily Vedomosti on Tuesday that the downturn was part of a normal economic cycle, then the bigger picture starts to look very different.
If the deputy prime minister also cited historically low unemployment and rising household incomes as signs of economic stability, then the bigger picture starts to look very different.
What stands out is aleksandr Novak has cited record low unemployment and rising incomes as signs pointing to renewed. That is the part worth paying attention to.
Aleksandr Novak is in a tough spot here, curious how they navigate it.
Considering russia’s GDP shrank by 0.3% year-on-year in the first quarter, marking the country’s first quarterly contraction since early 2023, it raises some real questions about what happens next.
Think about it: russia’s GDP shrank by 0.3% year-on-year in the first quarter, marking the country’s first quarterly contraction since early 2023. That speaks volumes.
Russia has retained its position as the world’s fourth-largest economy by purchasing power parity (PPP) – which adjusts for cost-of-living differences across countries – since 2021, Novak said. Meanwhile the deputy prime minister also cited historically low unemployment and rising household incomes as signs of economic stability.
Reading that russia’s GDP shrank by 0.3% year-on-year in the first quarter, marking the country’s first quarterly contraction since early 2023 — hard to argue with the logic there.
Still waiting to hear what Aleksandr Novak actually plans to do about it.