Growth is declining
Putin dissatisfied with Russian economy
12/02/2025 – 8:01 p.mReading time: 1 min.
The Russian economy is struggling with several problems. Vladimir Putin also dislikes this.
Russian President Vladimir Putin has described a decline in production in some sectors of the economy as unacceptable. The transition to balanced growth remains a goal for the government and the central bank, Putin said on Tuesday at the annual Russia Calling economic forum.
“In several sectors, production not only did not increase this year, but actually fell. Are we satisfied with such a development? No,” Putin said.
Economic growth is expected to weaken to 0.5 to one percent. However, this is an expected consequence of the central bank’s policy to combat inflation. Putin announced that he would discuss the necessary steps for a transition to balanced growth at a special meeting with government representatives next week.
According to recent data, growth in Russian industrial production is mainly driven by the defense industry, while production in civilian sectors is stagnating or declining. Inflation is expected to fall to around six percent by the end of December, which Putin described as an “important success of this year.”
According to the Ministry of Economic Affairs, the annual inflation rate had fallen to 6.92 percent by November 27th, after being 10.3 percent in March. At its meeting on December 19th, the central bank will decide on the key interest rate, which is currently 16.5 percent to combat inflation.
