Russia's gross domestic product contracted by 0.3% in the first quarter of 2026, marking the country’s first quarterly decline since early 2023, according to preliminary data released by the Economy Ministry on Wednesday.

The data showed that GDP ⁠grew by 1.8% in March ​after declines of ​1.1% ⁠in ‌February ‌and 1.8% ⁠in ‌January.

Russia's $3.1 trillion economy contracted 1.4% in 2022 but grew 4.1% in 2023 and 4.9% in 2024. It grew only 1% last year, and Moscow's official forecast for this year is 1.3%.

A stronger ruble helps the central bank fight inflation but is negative for economic growth as it eats into exporting firms' profits, forcing them to cut investment, and making Russian products less competitive.