Putin's Strategy: Stalling Growth to Curb Inflation

In a strategic move to stabilize the Russian economy, President Vladimir Putin announced on Thursday that Russia is intentionally slowing its economic growth to control inflation. Despite two consecutive quarters of GDP decline, which suggest a technical recession, Putin assured that a recession is a distant prospect.

During a televised meeting with lawmakers, Putin emphasized that the controlled slowdown aims at maintaining macroeconomic stability. He confidently reiterated that the job market remains robust, mirroring sentiments from the Central Bank Governor Elvira Nabiullina, who also believes that a recession is not imminent.

Internationally, Russia faces extensive sanctions from the United States, Europe, and their allies following conflicts in Ukraine and Crimea. Despite these pressures, Russia's economy reported growth rates of 4.1% in 2023 and 4.3% in 2024, though the burden of high-interest rates is now leading to a slowdown.