Published by Global Banking and Finance Review
Posted on September 18, 2025
1 min readLast updated: January 21, 2026
Putin asserts Russia is slowing growth to control inflation, dismissing recession fears due to a strong labour market and strategic economic measures.
MOSCOW (Reuters) -President Vladimir Putin said on Thursday that Russia is deliberately slowing its economic growth in order to suppress inflation.
"As for the decline from more than 4% GDP growth: this is not a decline, it is a deliberate action. It is a slowdown in growth in exchange for curbing inflation and maintaining macroeconomic stability," Putin said during a televised meeting with top lawmakers.
A graph published in Russian central bank's report earlier in September showed two consecutive quarters of gross domestic product (GDP) decline in quarter-on-quarter terms, aligning with the common definition of a technical recession.
Putin downplayed concerns about a downturn, saying the Russian economy remains far away from recession.
"I think that a recession is still a long way off, and the labour market reflects this," Putin said, echoing Central Bank's Governor Elvira Nabiullina stance.
(Reporting by ReutersWriting by Maxim Rodionov; editing by Vladimir Soldatkin)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
A recession is defined as a significant decline in economic activity across the economy, lasting more than a few months, typically visible in GDP, income, employment, manufacturing, and retail sales.
Economic growth is an increase in the production of goods and services in an economy over a period of time, usually measured as the percentage increase in real GDP.
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