“There is no confidence in the future”: An economist explains the 16% slump in construction in Russia
14 May 20:08
A decline in the construction sector is one of the most reliable indicators of an economic crisis.
Economist Yaroslav Zhalilo stated this in an interview with the YouTube channel "Komersant Ukrainian", commenting on April data from the Foreign Intelligence Service of Ukraine.
According to the SVR, in January 2026, the decline in construction in Russia reached 16% compared to the previous year, and in February—14%. According to the expert, this trend indicates that businesses and people no longer want to invest in the future because they simply do not believe it will be better.
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“Construction is investment. Investment is trust in the future. If both businesses and people do not believe in a better future, they do not invest money in that future,” he explained.
Zhalilo drew attention to an important nuance: as recently as 2025, overall construction statistics in the Russian Federation were positive, but the production of construction materials was already in decline at that time. This means that the construction of trenches, fortifications, and defensive lines artificially propped up the overall figure and masked the real decline in residential and commercial construction.
“The negative trend in construction right now is a very serious indicator that the public and businesses currently lack confidence in the future. There are no investments,” the economist concluded.
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