Nabiullina: Economy to Continue Growing in 2026

The stronger the overheating, the more noticeable the economic slowdown will be, the head of the Bank of Russia pointed out

The economy will continue to grow in 2026, but the more overheated it was, the more noticeable its slowdown will be. This was stated by the head of the Central Bank of the Russian Federation Elvira Nabiullina, TASS reports.

"I would just like to note that the economy continues to grow this year and will continue to grow next year, according to our estimates, albeit at a slower pace than in the previous two years. It cannot be any different when overheating, but this is growth. Moreover, the stronger the overheating, the more noticeable the economic slowdown will be. We have always said this, and I would like to emphasize it," Nabiullina said.

According to her, the pace of economic growth will accelerate again as it emerges from the overheating stage.

"When will growth accelerate again? In our opinion, when potential catches up with demand, that is, when we finally come out of overheating, and they both grow — demand and supply — at a sustainable pace. For inflation, this will mean a sustainable return to the target of close to 4%, and for rates, this will be a return to the neutral area. We currently estimate this neutral area at 7.5-8.5%," the head of the Bank of Russia noted.

The head of the regulator cited not the reduction in rates, but the return of the economy to a balanced state as the reason for the acceleration of growth.

"The reason for the acceleration of growth - I would like to emphasize this here - is not the reduction in rates per se, but the fact that the reduction in rates will mean that the economy is returning to a balanced state, demand is no longer ahead of production capacity. And when will this happen in time? Here is our assessment, our forecast - in the baseline forecast, this happens by the beginning of 2027," Nabiullina said.