The Russian economy is expected to keep growing in 2026, but the stronger the current overheating, the more noticeable the slowdown will be, said Bank of Russia head Elvira Nabiullina.
“Our economy continues to grow this year and will continue next year, albeit at a slower pace than in the past two years. Slower growth after overheating is natural, but it’s still growth. The more intense the overheating, the more distinct the slowdown,” Nabiullina stated.
She explained that growth rates will pick up again once the economy fully emerges from the overheating phase and supply catches up with demand, leading to balanced, sustainable growth. This would also support inflation stabilizing near the 4% target and interest rates settling in a neutral zone, currently estimated at 7.5–8.5%.
Nabiullina stressed that the expected growth acceleration is not due simply to lower interest rates, but rather to the economy returning to a balanced state where demand no longer outpaces production capacity.
“Our forecast shows this balanced situation happening around early 2027,” she said.
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Based on TASS materials