Putin Says Russia’s Economic Slowdown in 2025 Is a Planned Move to Control Inflation

Post by : Saif Nasser

Russian President Vladimir Putin has said that the expected slowdown in Russia’s economy in 2025 is not an accident but a planned decision. Speaking at his annual end-of-year press conference in Moscow, Putin explained that the country’s central bank took deliberate steps to slow economic growth in order to control high inflation.

According to Putin, Russia’s economy grew strongly by 4.3% in 2024, but growth is expected to fall to around 1% in 2025. He said this slowdown was the result of strict policies introduced by the central bank to reduce rising prices, which had been putting pressure on ordinary people and businesses.

Putin said these measures are already showing results. Inflation, which stood at about 9.5% last year, is expected to fall to between 5.5% and 5.7% in 2025. He described this as a necessary adjustment to bring balance back to the economy and protect long-term stability.

The Russian leader stressed that allowing the economy to grow too fast can cause prices to rise sharply. By slowing things down, the government and the central bank aim to prevent inflation from getting out of control, even if it means weaker growth in the short term.

Putin also said that despite slower growth, the Russian state remains financially strong. He assured the public that all the needs of the armed forces can be fully covered by the national budget. This statement comes at a time when military spending remains a major part of government expenses.

Economists often describe this kind of policy as “cooling” the economy. It involves higher interest rates and tighter financial controls to reduce spending and borrowing. While such steps can slow growth, they are often used to bring down inflation and protect the value of money.

Putin’s comments signal that Russia’s leadership is prioritizing price stability over rapid expansion. The government appears willing to accept slower economic growth in the near future to create a more stable economic environment in the years ahead.