President Vladimir Putin convened a high-level meeting with senior economic officials to assess Russia’s economic trajectory over the past year and outline priorities for future development. Attendees included Prime Minister Mikhail Mishustin, Central Bank Governor Elvira Nabiullina, Finance Minister Anton Siluanov, and key cabinet members. The discussion centered on macroeconomic stability, inflation control, and long-term structural reforms. n nOfficial data indicates that Russia’s GDP expanded by 1% in the previous year, a decline from the 4.1% growth recorded in 2023 and 4.3% in 2024. Officials attributed this slowdown to deliberate policy choices aimed at curbing inflation, which fell from 9.5% in 2024 to 5.6% by year-end. Although inflation rose slightly to 6.4% year-on-year as of January 26, authorities expect this uptick to be temporary, largely due to recent tax adjustments including a VAT increase. Both government and central bank projections anticipate inflation returning to around 5% by the end of the current year. n nPutin emphasized the importance of balancing price stability with broader economic health, urging officials to monitor all major indicators rather than focusing solely on inflation. He reiterated goals set during the December Council for Strategic Development and National Projects: revitalizing domestic production, enhancing the business environment, and stimulating investment with an emphasis on labor productivity. These objectives are embedded in the Plan of Structural Changes in the Economy, scheduled for implementation through 2030 and approved by the government in November of the prior year. n nThe president stressed the need for timely execution of reform measures to yield visible results in 2025, particularly in accelerating growth and further reducing inflation. He also highlighted the role of technology in addressing labor shortages, calling for wider adoption of automation, industrial robotics, digital platforms, and artificial intelligence tools. Additionally, he urged improvements in employment structures to foster high-productivity, well-compensated jobs—important both for current workers and students entering the workforce. n nThe overarching aim, according to Putin, is to transition toward a new phase of qualitative, intensive economic development that supports sustained national advancement. n
— News Original —nMeeting on economic issues • President of RussianThe meeting was attended by Prime Minister Mikhail Mishustin Mishustin MikhailPrime Minister of the Russian Federation , Chief of Staff of the Presidential Executive Office Anton Vaino Vaino AntonChief of Staff of the Presidential Executive Office , First Deputy Prime Minister Denis Manturov Manturov DenisFirst Deputy Prime Minister of the Government of the Russian Federation , Deputy Prime Minister – Chief of the Government Staff Dmitry Grigorenko Grigorenko DmitryDeputy Prime Minister of the Government of the Russian Federation – Chief of the Government Staff of the Russian Federation , deputy prime ministers Tatyana Golikova Golikova TatyanaDeputy Prime Minister of the Government of the Russian Federation , Alexander Novak Novak AlexanderDeputy Prime Minister of the Government of the Russian Federation , Marat Khusnullin Khusnullin MaratDeputy Prime Minister of the Government of the Russian Federation , Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin Oreshkin MaximDeputy Chief of Staff of the Presidential Executive Office (via videoconference), Minister of Economic Development Maxim Reshetnikov Reshetnikov MaximMinister of Economic Development of the Russian Federation , Minister of Finance Anton Siluanov Siluanov AntonMinister of Finance of the Russian Federation , and Governor of the Central Bank Elvira Nabiullina Nabiullina ElviraGovernor of the Central Bank of the Russian Federation (Bank of Russia) . n n* * * n nPresident of Russia Vladimir Putin: Colleagues, good afternoon, n nToday, we will hold our first meeting this year to discuss economic issues. n nIn this context, I suggest we examine some interim results of the domestic economy’s performance over the past year. We will discuss forecasts, development trends in light of current factors and challenges, alongside the situation in both domestic and international markets. Naturally, we will also conduct a detailed analysis of the mechanisms for achieving our economic objectives, supporting the growth essential for the nation’s confident and dynamic progress. n nI would note that Russia’s GDP grew by one percent last year. This is lower than the growth rates observed earlier – 4.1 percent in 2023 and 4.3 percent in 2024 – as we are well aware. n nHowever, we also understand that this slowdown was not only anticipated – it could even be described as deliberate, stemming from targeted measures to curb inflation. While price growth stood at 9.5 percent in 2024, this figure was reduced to 5.6 percent by the end of last year. n nWe all recognise the critical importance of moderate and predictable price dynamics for the well-being of Russian families, for the operation of enterprises and organisations, for public finances, and for the investment process and planning. n nAt the beginning of this year, inflation has, admittedly, accelerated slightly. As of January 26, it stood at 6.4 percent year-on-year. This was also expected, partly due to adjustments in the tax system, particularly the increase in VAT. According to assessments by both the Government and the Central Bank – that is, by your own estimates, colleagues – the impact of these changes on prices will be short-lived. n nIn any case, we have had such experiences before – we witnessed this during the previous increase, and that was how it unfolded. I reiterate, the practice exists, and I believe there is every reason to assume that it will be the same now. We will see, of course, but expectations are indeed that this period will be short-term, and by the end of the year, inflation should decrease again to approximately 5 percent. n nI draw your attention to what we have always emphasised: it is necessary to monitor not only price dynamics – it is important to see the full picture, all macroeconomic indicators. In this regard, I would like to remind everyone of the tasks set before the Government and the Central Bank. These were outlined at the December meeting of the Council for Strategic Development and National Projects. n nThe objective is clear: we must ensure the recovery of the domestic economy, improve the business climate, and boost investment activity with a focus on increasing labour productivity. Corresponding measures have been included in the Plan of Structural Changes in the Economy, which is designed until 2030. n nI request that it be implemented rhythmically, according to the schedule, so that the first significant results become apparent already this year. I am referring to both an increase in economic growth rates and a reduction in inflation. I would like to remind you that this Plan of Structural Changes, which I have just mentioned, was approved by the Government at the end of last year, in November – is that correct, Mr Mishustin? n nAt the same time, I would like to emphasise once again that increasing labour productivity is a priority task amid labour shortages in certain sectors and industries. Here, it is necessary to more actively implement automated systems and industrial robots, digital platforms, and artificial intelligence solutions. n nI also ask my colleagues to pay increased attention to improving the employment structure in the economy. It is important for us to make it more efficient by creating modern, well-paid jobs in sectors with high labour productivity. This is significant both for specialists already working at enterprises and companies, and for those who are still choosing their future profession or studying at universities, colleges, or technical schools. n nIn short, what we need to ensure is a new level of qualitative, intensive development of the economy and, consequently, of the country as a whole. n nLet us proceed to the discussion. Please, Mr Reshetnikov, you have the floor. n n<…>
