ST. PETERSBURG, Russia — President Vladimir Putin on Friday hailed Russia’s financial outlook, saying it has managed to curb inflation and ease its reliance on power exports.
His optimistic account in a speech on the St. Petersburg Worldwide Financial Discussion board contrasted with somber statements by some members of his authorities who warned on the similar convention that Russia may face a recession. Financial Minister Maxim Reshetnikov had stated Thursday that the nation is “getting ready to going right into a recession.”
Putin talked about the recession warnings, however emphasised that “it mustn’t be allowed.” He identified that manufacturing industries have posted regular progress, permitting the nation to scale back its reliance on oil and fuel exports.
“The notion of Russian economic system as based mostly on uncooked supplies and depending on hydrocarbons exports have clearly grow to be outdated,” Putin stated, including that the economic system grew by 1.5% within the first 4 months of 2025 and inflation has dropped from double digits to 9.6%.
Putin has used the annual discussion board to spotlight Russia’s financial prowess and encourage overseas funding, however Western executives have shunned it after Moscow despatched troops into Ukraine in 2022, leaving it to enterprise leaders from Asia, Africa and Latin America.
The economic system, hit with a slew of Western sanctions, has to date outperformed predictions. Excessive protection spending has propelled progress and saved unemployment low regardless of fueling inflation.
Massive recruiting bonuses for navy enlistees and dying advantages for these killed in Ukraine even have put extra earnings into the nation’s poorer areas. However over the long run, inflation and a scarcity of overseas investments pose threats to the economic system.
Economists have warned of mounting pressure on the economy and the probability it could stagnate due to lack of investment in sectors aside from the navy.
Putin stated the expansion of navy industries helped develop new applied sciences which have grow to be obtainable to the civilian sector.
He vowed to proceed navy modernization, counting on classes discovered throughout the preventing in Ukraine.
“We’ll elevate the potential of the Russian armed forces, modernize navy infrastructure and equip the troops with cutting-edge tools,” Putin stated.