The Russian economy slows down. In the Kremlin they lower growth forecasts

The Minister of Finance of Russia Anton Siłuanow stated on Wednesday that the ministry forecasted that this year's economic growth will be 1.5 percent. Earlier it was assumed that the Russian economy would increase by 2.5 percent.

– Russia provides economic growth in 2025 at 1.5 percent., o jeden punkt procentowy mniej niż wcześniejsza oficjalna prognoza – powiedział minister finansów podczas spotkania na Kremlu z rosyjskim przywódcą Władimirem Putinem. Siluanow added that next year the relief of monetary policy should be possible, which will give the economy an additional development impulse.

Despite the western sanctions, the Russian economy grew dynamically in 2023 and 2024, but this year it slows down rapidly – noted the Reuters agency. The reasons are high interest rates, which are to strangle inflation related to record expenses for the army and labor deficiencies.

In June, the Minister of Economy Maksima Reszetnikov said in a speech at the Economic Forum in St. Petersburg that Russia was balancing on the brink of recession, and in July the International Monetary Fund (IMF) reduced its own forecasts for Russia, considering that this year its GDP will increase by only 0.9 percent. And Russia will be on the road to stagnation. Last year's increase exceeded 4 percent, and next year's, according to the IMF, will amount to about 1 percent. (PAP)

OS/ KARE/