Russian President Vladimir Putin has said that the country's economic growth is bound to slow down. Speaking at the congress of the Russian Union of Industrialists and Entrepreneurs (RUIE) on March 18, he said that the government and the Central Bank should take measures to stabilize the economy.
The risk of economic slowdown
Putin acknowledged that Russia's gross domestic product (GDP) grew by 4.1 percent in 2024, but noted that this growth is not permanent and that the economy is starting to slow down. "The Central Bank shows one indicator, the government and the Ministry of Economic Development present other figures. According to them, growth will be 2-2.5 percent. We must act to avoid a collapse or a severe cooling,” Putin said.
The president stressed that this issue is delicate and that discussing it will drag on for a long time. “If we start discussing it, we can meet until the night,” he added.
The risk of economic crisis and inflation rate
The Russian Ministry of Economic Development predicts that economic growth in 2025 will fall from 4.1 percent to 2-2.5 percent. The Central Bank expects even lower growth - at 1-2 percent. At the same time, inflation is expected to remain at around 7-8 percent, well above the target of 4 percent.
Military industry and economic future
International experts emphasize that the rapid development of the Russian economy is mainly due to the military industry. According to them, this growth will not be long-term and the Russian economy is starting to show signs of overheating. In such circumstances, the government and the Central Bank will need to take serious measures to stabilize the economy in the long term.
Putin's warning is a serious signal to Russian oligarchs and leaders of large industries, who need to consider new strategies to mitigate the risk of economic crisis.
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