Moscow: Russian President Vladimir Putin has acknowledged that the country’s economy is deliberately being slowed down as part of a broader effort to rein in inflation and safeguard financial stability. Speaking at a televised meeting with senior lawmakers, the president framed the move not as a weakness but as a conscious trade-off, declaring that Russia remains “far away” from the threat of recession despite signs of declining output.
Putin stressed that curbing inflation has become a national priority, even at the expense of reduced growth figures. “It is a deliberate action,” he told legislators. “A slowdown in growth in exchange for curbing inflation and maintaining macroeconomic stability.” He underlined that this approach was not a sign of economic failure but a reflection of the government’s willingness to make short-term sacrifices for long-term health.
The comments came in response to data showing that Russia’s GDP had contracted for two consecutive quarters on a quarter-to-quarter basis meeting the technical definition of a recession in most advanced economies. The president, however, downplayed those concerns, pointing to a strong labour market and steady employment trends. He insisted that, while growth may be cooling, the underlying fundamentals of the Russian economy remain resilient.
Russia’s economic performance has been closely monitored since Western nations imposed a barrage of sanctions following Moscow’s actions in Ukraine and Crimea. The country now faces more than 25,000 individual sanction measures, covering everything from banking and energy to high-tech imports. Despite these pressures, Russia posted impressive growth of 4.1% in 2023 and 4.3% in 2024, outpacing many major economies, including members of the G7.
But economists warn that the current slowdown is a different challenge, driven largely by high interest rates and rising borrowing costs. Businesses are beginning to feel the squeeze, while consumer spending is showing signs of fatigue. Analysts suggest that if inflation remains stubborn and growth continues to decelerate, the government may have to balance its priorities more carefully to prevent stagnation.
For now, Putin is projecting confidence that the economy can withstand the pressure. His remarks underscore a message of control and resilience: that the Kremlin is choosing stability over unchecked expansion, even as the global spotlight remains fixed on how Russia navigates its sanctions-stricken economic landscape.