Investments in the Russian economy will fall by 5.4% in 2023

The Russian economy will end 2023 with a decline in investments of 5.4%, marking the deepest drop in 11 years. This is significantly worse than in 2022 (-2.3%) and the May forecasts (-1.5%). In 2024, investment growth is expected to be only 0.2%, and by 2029, volumes will return to the level of 2023 but will remain 2.3% below the figures for 2024. Economic Development Minister Maxim Reshetnikov noted that high interest rates, uncertainty, and infrastructure risks have exacerbated the situation. In the first quarter of 2026, the decline in investments was 14.6%, a record since 2009. Economists point to a high risk of doing business in Russia, where assets worth 7.6 trillion rubles have been seized over four and a half years of war. A survey by the Russian Union of Industrialists showed that 86% of top managers have cut expenses, and 19% have reduced investment programs. Pessimism among companies and citizens is growing, leading to further economic decline.