President Putin Addresses 2025 Economic Performance
Russian President Vladimir Putin announced on February 3, 2026, that the Russian Federation's Gross Domestic Product (GDP) expanded by 1% in 2025. Speaking at his first economic meeting of the year, President Putin characterized this growth as an anticipated and intentional slowdown, a direct result of measures implemented to curb inflation.
The 1% growth rate for 2025 marks a notable decrease compared to the 4.1% recorded in 2023 and 4.3% in 2024. President Putin emphasized that the primary objective behind this moderated growth was to stabilize prices, which he stated is crucial for the well-being of Russian families, business operations, public finances, and investment planning.
Inflation Control Efforts and Outcomes
A key focus of the government's economic strategy in 2025 was the fight against inflation. President Putin reported that price growth, which stood at 9.5% in 2024, was successfully reduced to 5.6% by the end of 2025. While acknowledging a slight acceleration in inflation to an annual rate of 6.4% by January 26, 2026, he expressed confidence that it would return to approximately 5% by the close of the current year.
To combat persistent inflationary pressures, the Central Bank of Russia (CBR) had implemented a stringent monetary policy throughout 2025. The CBR raised interest rates, reaching a peak of 21% in the first half of the year. Forecasts from the Bank of Russia's monetary policy guidelines for 2025-2027 had indicated that inflation could accelerate to 13.0–15.0% in 2025, necessitating an average key rate of 22.0–25.0% to prevent it from spiraling out of control.
Economic Landscape and External Assessments
The 1% GDP growth figure for 2025 aligns with various external forecasts. The Central Bank of Russia itself had projected 2025 GDP growth to be between 0.5% and 1.5%. The International Monetary Fund (IMF) had estimated Russia's GDP growth rate for 2025 at 0.6%. Similarly, the Bank of Finland Institute for Emerging Economies (BOFIT) anticipated full-year growth to be at or below 1%. Deputy Prime Minister Alexander Novak also estimated 2025 growth at 1%.
However, the year 2025 also presented challenges for the Russian economy. Reports indicated that manufacturing experienced a decline, marked by:
- Contractions in output and new orders
- A rising labor shortage
- A decrease in input buying
Future Economic Priorities
Looking ahead, President Putin outlined several key priorities for Russia's economic agenda. These include:
- Restoring national economic growth rates
- Improving the business climate
- Increasing investment activity
- Raising labor productivity
- Implementing the 2030 plan
5 Comments
Raphael
Prioritizing inflation control was a necessary measure given past rates, but it clearly came at the cost of broader economic expansion. The challenge now is to restart growth without reigniting price spirals.
Leonardo
Don't fall for the spin. This 'slowdown' is a symptom of deeper problems, not a strategic choice.
Noir Black
Where's the transparency on the real economic impact? This is just propaganda.
Eugene Alta
The 1% growth was predicted by multiple sources, showing transparency and accurate planning.
Comandante
While controlling inflation is certainly a positive step for stability, the significant drop in GDP growth from previous years raises concerns about overall economic vitality and future prospects.