Russian Finance Minister Anton Siluanov expected, during a meeting at the Kremlin, economic growth of 1.5 percent in 2025, down by one percentage point from the previous official forecasts.
The Russian economy achieved strong growth during 2023 and 2024 despite the many Western sanctions imposed on the country after its invasion of Ukraine in 2022, but the economy is witnessing a sharp slowdown this year. Domestic activity has come under pressure due to labor shortages and high interest rates imposed to curb inflation, which has accelerated as military spending reached record levels.
Siluanov revealed to President Vladimir Putin that the Ministry of Economy now expects growth of no less than 1.5 percent this year, while the official forecasts for 2025 were at 2.5 percent. In 2024, the Russian economy grew by 4.3 percent, but the central bank expects growth ranging between 1 and 2 percent this year.
Source (Al-Sharq Al-Awsat Newspaper, Edited)
