Published by Global Banking & Finance Review®
Posted on December 2, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GooglePutin criticizes sector output declines, aims for balanced growth. Inflation expected to fall, central bank's next rate decision on Dec 19.
MOSCOW, Dec 2 (Reuters) - Russian President Vladimir Putin said on Tuesday that a fall in output in some sectors of the economy was not acceptable, and a transition to balanced growth remained a goal for the government and the central bank.
Speaking at an annual "Russia Calling" investment event, Putin said economic growth was now expected to slow to between 0.5% and 1%, which was an expected consequence of the central bank policy to fight inflation.
"At the same time, some imbalances have emerged. In several sectors, production output not only failed to increase this year but actually decreased. Are we satisfied with such trends? No," Putin said.
Recent data showed that growth in industrial output was driven mainly by defence-related sectors, while output in sectors producing goods for civilian use was either stagnating or falling.
"The government and the central bank were tasked with fundamental objectives, namely, to ensure a transition to a balanced growth," Putin said, adding that he will discuss these tasks with officials at a special meeting next week.
Putin said that inflation was now expected to fall to around 6% by the end of December, calling it "an important achievement of this year".
Annual consumer inflation dropped to 6.92% as of November 27, the economy ministry said last week. Inflation has been gradually decreasing, after hitting 10.3% in March, as a result of the central bank's tight monetary policy.
In September, the government cut its forecast for inflation in 2025 to 6.8%, from 7.6% previously, and for GDP growth to 1% from 2.5%. The central bank will make its next decision on its key rate, now at 16.5%, at a meeting on December 19.
(Reporting by Vladimir Soldatkin; Writing by Gleb Bryanski; Editing by Guy Faulconbridge and Alex Richardson)
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.
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. It is typically measured annually.
Economic growth is an increase in the production of goods and services in an economy over time, often measured as the percentage increase in real GDP.
Financial stability refers to a condition in which the financial system operates effectively, with institutions able to manage risks and absorb shocks without triggering a financial crisis.
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