Russian President Vladimir Putin stated on September 18 that the country is deliberately moderating its economic expansion to control inflation, asserting that a recession remains distant despite signs of slowing activity. Speaking during a televised session with senior legislators, Putin described the measured growth as a strategic choice aimed at preserving macroeconomic stability and curbing price increases.
Earlier in September, a chart from the Russian central bank indicated two consecutive quarters of GDP contraction on a quarter-on-quarter basis—a pattern typically associated with a technical recession. However, Putin dismissed concerns, emphasizing that labor market conditions remain strong and do not reflect an economic downturn. His remarks echoed those of Central Bank Governor Elvira Nabiullina, reinforcing the official stance that the economy is resilient.
Since 2022, Russia has faced over 25,000 sanctions from the United States, Europe, and allied nations in response to its actions in Ukraine and the annexation of Crimea in 2014. These measures were designed to weaken the Russian economy and erode domestic support for Putin’s leadership. Nevertheless, the country’s war-driven economy expanded by 4.1% in 2023 and 4.3% in 2024, outpacing growth rates in G7 nations. However, momentum is now waning due to high interest rates implemented to manage inflationary pressures.
— news from Reuters
— News Original —
Putin says Russia is curbing economic growth to control inflation, recession ‘far away’
MOSCOW, Sept 18 (Reuters) – President Vladimir Putin said on Thursday that Russia is deliberately slowing its economic growth in order to suppress inflation and that the world ‘s second largest oil exporter was far away from a recession. n n”It is a deliberate action. It is a slowdown in growth in exchange for curbing inflation and maintaining macroeconomic stability,” Putin said during a televised meeting with top lawmakers. n nSign up here. n nA graph published in Russian central bank ‘s report earlier in September showed two consecutive quarters of gross domestic product (GDP) decline in quarter-on-quarter terms, aligning with the common definition of a technical recession. n nPutin downplayed concerns about a downturn, saying the Russian economy remains far away from recession. n n”I think that a recession is still a long way off, and the labour market reflects this,” Putin said, echoing Central Bank ‘s Governor Elvira Nabiullina stance. n nThe United States, Europe and allies have imposed more than 25,000 different sanctions on Russia over the 2022 war in Ukraine and the 2014 annexation of Crimea in a bid to sink Russia ‘s economy and undermine support for Putin. n nRussia ‘s war economy grew at 4.1% in 2023 and 4.3% in 2024, far faster than G7 countries, but it is slowing sharply under the weight of high interest rates.