Putin downplays threat of recession at Saint Petersburg Discussion board, points to growth in manufacturing

President Vladimir Putin on Friday hailed Russia’s economic outlook, saying it has managed to curb inflation and ease its reliance on strength exports.

“Russia takes the fourth place in the world in gross domestic product and the first place in Europe,” he stated.

His optimistic story in a speech at the Saint Petersburg International Financial Discussion board contrasted with somber statements by some participants of his govt who warned at the identical conference that Russia may seemingly seemingly face a recession. 

Financial Minister Maxim Reshetnikov stated on Thursday that the nation is “on the brink of going into a recession.”

Putin talked about the recession warnings, but emphasised that “it mustn’t be allowed.” 

He pointed out that manufacturing industries have posted staunch growth, allowing the nation to lower its reliance on oil and gas exports.

“The perception of Russian economy as in keeping with uncooked materials and depending on hydrocarbons exports have clearly develop into outdated,” Putin stated, adding that the economy grew by 1.5% in the first four months of 2025 and inflation has dropped from double digits to 9.6%.

Putin has former the annual discussion board to highlight Russia’s economic prowess and lend a hand international investment, but Western executives have shunned it after Moscow despatched troops into Ukraine in 2022, leaving it to business leaders from Asia, Africa and Latin The united states.

The economy, hit with a slew of Western sanctions, has up to now outperformed predictions. 

Excessive defence spending has propelled growth and kept unemployment low regardless of fuelling inflation. 

Spacious recruiting bonuses for navy enlistees and death advantages for these killed in Ukraine even have attach extra income into the nation’s poorer areas. 

But over the future, inflation and an absence of international investments pose threats to the economy. 

Economists have warned of mounting strain on Russia and the likelihood its economy would stagnate due to lack of investment in sectors instead of the navy.