Eurasian Development Bank Reports Slight Improvement in Russia's Q1 GDP Dynamics
Industrial output growth of 0.3% in the first quarter helped mitigate Russia's economic contraction
Quick Look
- Russia's GDP decline slowed to 0.3% in Q1 2026, supported by a 0.3% rise in industrial output.
- The Eurasian Development Bank expects further economic improvement in the second quarter driven by rising energy prices.
AI-generated summary
Why It Matters
The Eurasian Development Bank is an international financial institution focused on investment and economic development across its member states in Eurasia.
Industrial output growth of 0.3% in Russia in the Q1 slightly improved the country’s GDP dynamics, according to a weekly review by the Eurasian Development Bank (EDB).
Russia’s GDP declined by 0.3% year-on-year in January - March 2026 after falling by 1.8% year-on-year in January - February. The dynamics improved amid industrial output growth of 0.3% year-on-year following a 0.8% contraction, the review, published on the bank’s Telegram channel, said.
Growth was driven by the extractive sector (+0.8% year-on-year), while manufacturing remained in negative territory (-0.7% year-on-year), EDB analysts noted. They expect further improvement in Russia’s GDP dynamics in the second quarter amid rising energy prices, the review said.
The EDB is an international financial institution that carries out investment activities in Eurasia to expand economic ties and promote comprehensive development among its member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. Uzbekistan joined the bank in 2025.
The bank’s headquarters is located in Alma-Ata.
What to Watch
AI outlook — possibilities, not facts
Russian GDP growth figures for Q2 will show further improvement.
Likely · Within months
Open Questions
- What specific factors are contributing to the negative performance in the manufacturing sector?
- How significant is the expected rise in energy prices for the Russian budget?
