Finance
Russia's Putin says cooling of economy in 2025 is a 'conscious' decision
Published by Global Banking and Finance Review
Posted on December 19, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 19, 2025
1 min readLast updated: January 20, 2026
Putin states Russia's economic slowdown to 1% in 2025 is a strategic move to reduce inflation to 5.5%-5.7%, ensuring military funding remains stable.
MOSCOW, Dec 19 (Reuters) - An economic slowdown in Russia this year to 1% growth from 4.3% in 2024 was the result of conscious actions by the central bank to bring down the inflation rate, President Vladimir Putin said on Friday.
Putin told his annual press conference that, as a result of these actions, the inflation rate will slow to between 5.5% and 5.7% in 2025 from 9.5% last year. He said all the armed forces' needs could be financed from the state budget.
(Reporting by Gleb Bryanski, Guy Faulconbridge, Vladimir Soldatkin, Anton Kolodyazhnyy and Filipp Lebedev, Editing by Timothy Heritage)
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates, aiming 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, eroding purchasing power. It is typically measured as an annual percentage increase.
A central bank is a national financial institution that oversees the monetary system for a country or group of countries, managing currency issuance, interest rates, and monetary policy.
Economic growth refers to the increase in the production of goods and services in an economy over time, often measured by the rise in real GDP.
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