Putin said that the stability of public finances, the fulfilment of planned projects and the implementation of national programmes directly depend on the performance of the domestic economy.
“It is obvious that the stability of public finances, the implementation of planned projects and programs directly depend on the state of affairs in the Russian economy. And here we have set the main goal, namely, to ensure the growth rates necessary for this,” Putin said, as per TASS.He added that the Russian economy should “strive to outpace its dynamics (of the global economy) by revealing its own potential of industries, regions and territories, developing ties with foreign partners, through the widespread introduction of advanced technologies, and mastering new promising areas of the modern economy.”
Russia’s GDP in 2024 was about $2.4 trillion, making it one of the 10-15 largest economies globally, though much smaller than the US, EU or China.
Russian inflation control and results
Putin also noted that government policies aimed at reducing inflation were beginning to take effect.
Citing data from the Economic Development Ministry, he highlighted that Russia’s GDP rose by 0.4% in July and 1.1% over the first seven months of 2025.
This compares with 4.3% GDP growth in 2024 and about 3.6-4.1% in 2023, underscoring a sharp slowdown.”If in July the growth of consumer prices was 8.8%, then in August – 8.1%. And now the trajectory of inflation reduction is below the forecasts of the government and the Bank of Russia. In other words, efforts to reduce inflation are yielding results,” Putin was quoted as saying by TASS.
Russia has struggled with high inflation since the Ukraine war began, with consumer prices rising 11.9% in 2022, moderating to 7.4% in 2023, and still elevated at around 8-9% in 2024–25. This is well above the Central Bank of Russia’s 4% target.
News agency Reuters reported that Putin acknowledged the progress but also raised concerns over slowing economic momentum. Russia’s GDP expanded by 4.3% in 2024, in comparison to 1.1% growth in the first of this year.
Much of the recent growth has been driven by energy exports and war-related government spending, but sanctions, labour shortages and high interest rates are now weighing on momentum.
“The question is, is that enough? Is this what we wanted? Are we managing to solve the task we set for ourselves? Or do we need other measures and higher growth rates, naturally while ensuring macroeconomic and inflationary stability given the central bank’s prudent policy?” Putin asked, as per Reuters.
Russian, Indian economies dead: Trump
Putin’s remarks come as US President Donald Trump had recently said that Russia’s economy is “dead.” Trump had also criticised India for buying Russian oil citing that the move helps Russia to fuel its war with Ukraine. He had said that both Russia and India “would go down together”.
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India — their tariffs are too high, among the highest in the world. Likewise, Russia and the USA do almost no business together. Let’s keep it that way,” Trump wrote on his Truth Social platform on July 31.
The Russian economy’s figures also hold importance as the US and its ally European Union (EU) plan additional sanctions package to be imposed on Russia, citing that Putin is not negotiating the end of the war.
Economists forecast Russia’s growth to slow further to around 1-2% in 2025, below the global average of over 3%, unless energy prices or military spending give another boost.
