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Russian President Vladimir Putin chairs a meeting with members of the government in Moscow, Russia August 27, 2025.
| Photo Credit:
Sputnik/Vyacheslav Prokofyev/Pool via REUTERS
Russia sees 2025 economic growth at 1.5%, one percentage point lower than the earlier official forecast, Finance Minister Anton Siluanov said at a Kremlin meeting on Wednesday.
Russia’s economy grew robustly over 2023 and 2024 despite multiple rounds of Western sanctions imposed after its invasion of Ukraine in 2022 but is slowing sharply this year.
Labour shortages, high rates hit activity
Domestic activity has become strained by labour shortages and high interest rates introduced to tackle inflation, which has accelerated under record military spending.
Siluanov told President Vladimir Putin that the Economy Ministry now saw growth of at least 1.5% this year. The official forecast for 2025 was 2.5%.
“If this year we see rather tough conditions for the implementation of monetary and credit policy, we see that the rate of economic growth will nevertheless be no less than 1.5 percent this year, at least according to the assessment of the Economy Ministry,” Siluanov said.
Budget balance key to easing credit policy
“A balanced budget will give more opportunities to the Central Bank to soften the monetary and credit policy, which means that credit resources will be more accessible, more resources will appear in the sectors of the economy. Accordingly, next year this will give an additional impetus to socio-economic development.”
Russia’s economy grew 4.3% in 2024, though the central bank forecasts growth of 1-2% this year.
“There are a lot of nuances in terms of ensuring economic growth,” Putin told Siluanov. “But in general, of course, I support this approach.”
Published on August 27, 2025
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