Rapid Economic Growth Asserted by Putin in Russia's Context

Russian President Vladimir Putin asserted that Russia's economy has expanded at a quicker rate despite adversity, during a gathering with commercial sector representatives. His statement expressed, 'Growth in the past two years, not under favorable circumstances, but...'

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2025 May 28 . 4:07 PM

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Rapid growth in Russia's economy, as noted by President Vladimir Putin, has been achieved amidst... — Rapid growth in Russia's economy, as noted by President Vladimir Putin, has been achieved amidst tough circumstances, during the past two years. This assertion was made during a gathering with business leaders.

Rapid Economic Growth Asserted by Putin in Russia's Context

Russian Economy Grows at Accelerating Pace, Despite Challenging Conditions

Moscow, Russia - February 2025

Russian President Vladimir Putin revealed that the country's economy has grown at an accelerating pace over the past two years, despite encountering difficult conditions. Speaking at a meeting with business representatives, Putin cited GDP growth of 4.1% in 2023 and 4.3% in 2024.

"Our economy has grown, despite less than ideal circumstances, achieving a growth rate of 4.1% in 2023, and 4.3% in the year just passed," stated Putin, adding that the economy is improving at an increasing speed.

The head of state also extended his congratulations to entrepreneurs on their professional holiday.

While geopolitical events, such as the invasion of Ukraine, have significantly impacted the Russian economy, it has shown remarkable resilience. Factors contributing to this growth include investments from the National Wealth Fund (NWF), a military-driven economy, and revenue from oil and gas sectors.

The NWF has made strategic investments to support the economy, which has included funding to Russian companies totaling 1 trillion rubles in 2022 and proposals for "anti-crisis" investments worth up to 4.25 trillion rubles. The revenue from oil and gas was 8.8 trillion rubles in 2023, above the target of 8 trillion rubles.

The growth is not without challenges, however, as the economy faces rising inflation, high loan interest rates, and a focus on military production that could lead to economic and social tensions. The reliance on military-driven sectors suggests a potential vulnerability in the civilian economy, which may affect long-term stability and growth.

Moscow, Elena Volodina

"Despite challenging geopolitical conditions, such as the invasion of Ukraine, the Russian economy has shown remarkable resilience, with finance from the National Wealth Fund playing a significant role in business growth. The growth has been buoyed by military-driveneconomy and revenue from oil and gas sectors, though it faces challenges like rising inflation, high loan interest rates, and potential economic and social tensions caused by a focus on military production."

"Politics have greatly impacted the Russian economy, with President Vladimir Putin announcing GDP growth of 4.1% in 2023 and 4.3% in 2024, despite the adverse conditions. The economic growth has been subject to scrutiny due to its heavy reliance on military sectors, which may affect long-term stability and growth."