For citation:
Nikolaev, I. A. (2026). Strategic Challenges Facing the Russian Economy in 2026. AlterEconomics, 23(1), 10–25. https://doi.org/10.31063/AlterEconomics/2026.23-1.2
Abstract:
This article examines the strategic challenges facing the Russian economy in 2026, including a slowdown in GDP growth and persistently high inflation. The analysis is based both on a formal definition of strategic challenges and on substantive evidence from available statistical data. The study identifies the main causes of declining GDP growth, such as tight monetary policy, an increased tax burden, and other factors. Elevated inflation is also analyzed, with contributing factors including large-scale fiscal stimulus, tax increases, and accelerated price adjustments for goods and services provided by infrastructure companies. The article evaluates theoretical approaches and practical mechanisms for addressing these challenges. It shows that Keynesian policies aimed at countering economic slowdown have largely exhausted their potential at the current stage. In contrast, tools rooted in monetarism and supply-side economics are increasingly relevant. Recommended measures include slowing the growth of government spending, implementing targeted tax cuts, and intensifying rather than curtailing deregulation. Although implementing these measures will be difficult under current geopolitical conditions and sanctions, they are necessary to prevent the economic slowdown from worsening and persisting.
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