Putin Exudes Optimism on Russian Economy

June 23, 2025

(3 Minutes Read)

His optimistic account in a speech at the Saint Petersburg International Economic Forum contrasted with sombre statements by some members of his government who warned at the same conference that Russia could face a recession. Economic Minister Maxim Reshetnikov said on Thursday that the country is “on the brink of going into a recession.”

President Vladimir Putin hailed Russia’s economic outlook, saying it has managed to curb inflation and ease its reliance on energy exports. Russia takes the fourth place in the world in gross domestic product and the first place in Europe, he said.

Putin mentioned the recession warnings, but emphasised that it mustn’t be allowed. He pointed out that manufacturing industries have posted steady growth, allowing the country to reduce its reliance on oil and gas exports.

Putin said, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%. Putin has used the annual forum to highlight Russia’s economic prowess and encourage foreign investment, but Western executives have shunned it after Moscow sent troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin America.

The economy, hit with a slew of Western sanctions, has so far outperformed predictions. High defense spending has propelled growth and kept unemployment low, despite rising inflation.

Economists have warned of mounting pressure on Russia and the likelihood that its economy would stagnate due to a lack of investment in sectors other than the military.